11/03/2025
he Permanent Court of Arbitration (“PCA”), established in 1899, was the first intergovernmental organization created to provide a forum for conflict resolution between States through arbitration and other appropriate methods of dispute resolution.
Arising from the First Hague Peace Conference, which sought to strengthen the international dispute resolution system, the PCA currently has 124 Contracting States and addresses disputes in which at least one of the parties is a State or an International Organization[1].
Although originally headquartered in the Netherlands, the growth in the number of international arbitrations and the demand for proceedings seated in other jurisdictions led the PCA to establish agreements to create International Offices in other countries.
For instance, the PCA expressed interest in having Brazil as its main center of operations in Latin America, which led to the signing of the Host Country Agreement between the PCA and Brazil in December 2017.
After years of deliberation in the Congress, Legislative Decree n. 386/2022, which ratifies the Host Country Agreement, was approved by the Brazilian Senate in December 2024. Although it still requires the President’s signature to make the rule effective at a domestic level, Brazil is already legally recognized as one of the PCA’s offices internationally.
The choice of Brazil as the location for the PCA’s main headquarters in Latin America is not a coincidence, but rather a result of the country’s diplomatic tradition, which is marked by neutrality, reinforcing the perception that Brazil is an impartial actor in resolving disputes with geopolitical implications, particularly at the regional level.
In addition to its diplomatic significance, the establishment of an International Office of the PCA in Brazil is also an important milestone for the consolidation of the country as an international arbitration hub and confirms the legal certainty surrounding the institute.
Moreover, although Brazil currently does not resort to arbitration to settle disputes with other nations, the establishment of a PCA International Office in the country encourages a reassessment of this stance.
The ratification of the Host Country Agreement between Brazil and the PCA is beneficial and demonstrates the international community’s recognition of the maturity and relevance of arbitration in the country.
[1] It is important to highlight that, under the PCA Arbitration Rules, the Court’s Secretary-General has the discretion to refuse the administration of an arbitral proceeding that does not involve a State, a State entity, or an International Organization. In such cases, the PCA will act exclusively as an “Appointing Authority”, meaning it will be responsible solely for appointing the members of the Arbitral Tribunal.
Co-authored by: Silvia Rodrigues Pachikoski, Mariana Dias Sallowicz, Gabriel Rogenfisch Quintans, José Victor Palazzi Zakia and Julia Guimarães Rosseto
