Enforcing Foreign Arbitral Awards Across Borders: A Chilean Perspective

Winning a dispute is not the same as resolving it.

An arbitral award is only as valuable as its enforceability. Careful contract drafting, a well-chosen seat, and a well-argued case can all be undone if the jurisdiction where assets sit does not recognise the outcome. In Latin America, where enforcement records are uneven, this is often the most consequential decision a business makes, and the one left latest.

Chile stands apart. As a signatory to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, and with an international arbitration framework built on the UNCITRAL Model Law, its courts apply the Convention consistently. The Supreme Court is directly responsible for the approval or denial of the enforcement of foreign arbitral awards and has systematically interpreted and applied the Convention from a pro-arbitration perspective. Similarly, Chilean Courts of Appeal have taken an equally restrictive view on the motives for the annulment of international arbitration awards, contributing to a legal environment that favours the award executions.

Therefore, the grounds for refusing recognition are narrow and rarely invoked - or at least, rarely accepted. For parties holding a foreign award and needing to enforce it against Chilean-held assets, the environment is predictable and transparent.

Ariela Agosin, Senior Partner, Albagli Zaliasnik comments:

“Chile’s approach to enforcing foreign arbitral awards is one of the strongest in Latin America, and it is not accidental. Chilean courts take a pro-recognition stance. The Supreme Court does not look for reasons to refuse enforcement, and objections outside the Convention’s narrow grounds are rarely entertained.

A similarly restrictive view is taken by Courts of Appeal when ruling petitions for annulment of international arbitration awards, which-as of the time of this article- have all been denied. For international parties structuring agreements where enforcement may ultimately be needed, Chile offers clarity that you cannot take for granted across the wider region.”

Chile’s open economy amplifies this further. With free trade agreements spanning the US, EU and China, and a long track record attracting foreign investment in mining, energy and infrastructure, this is a jurisdiction where enforcement questions arise regularly, and where the system has been tested at scale.

This matters beyond Chile’s own borders. Many of the disputes that ultimately require enforcement in Chile involve counterparties from across Latin America, Europe, North America and beyond, with awards obtained in institutional seats elsewhere in the region or internationally. The enforceability of those awards in Chile is therefore a factor in deal structuring long before any dispute arises.

Sophia Rook-Blackstone, Regional Director, Alliott Global Alliance adds:

“What we hear increasingly from firms across Latin America is that clients want to know, before they sign anything, what happens if this goes wrong and where an award will actually stick. Chile gives a clear answer to that question. For the firms in our alliance working on cross-border deals in the region, that predictability matters enormously; it changes the conversation at the structuring stage, not just when things go wrong.”

For Alliott Global Alliance, this is where coordinated, multi-jurisdictional support becomes essential. AGA offices work across Latin America and globally to help clients understand not just where to arbitrate, but where and how to enforce, covering local court procedures, asset considerations, and regulatory context across multiple jurisdictions simultaneously.

This article is the third in AGA’s international arbitration series.

Read the first:“Brazil: A Neutral Platform for Resolving Global Disputes.” and the second: “How BRICS Is Reshaping Cross-Border Investment Disputes: An Indian Perspective.”

For support with cross-border matters involving Chile and Latin America, contact Sophia Rook-Blackstone: sophia@alliottglobal.com

About Alliott Global Alliance:

Founded in 1979, Alliott Global Alliance is a global alliance of independent law, accounting, and advisory firms, operating from more than 340 offices in over 100 countries and providing clients with coordinated, multidisciplinary support worldwide through a trusted global platform. The Alliance is ranked in Chambers and Partners as a Leading Law Firm Network, reflecting the strength and international capability of its legal practices — Together as One.

Our firms share a common purpose: to exchange knowledge, capability, and opportunity in ways that strengthen their businesses and make the world smaller for the clients they serve. This collaboration is underpinned by a spirit of openness and mutual respect, enabling each to broaden its experience, deepen its expertise, and achieve greater success through coordinated international collaboration.

Alliott Global Alliance continues to expand its global presence, with a strategic objective to be represented in 120 countries by 2030. A limited number of affiliation opportunities remain available for independent professional firms that meet our standards and share our commitment to international collaboration. For further information, please contact membership@alliottglobal.com.