8/30/2021
The importance of agribusiness to the Brazilian economy is notorious. The country ranks fourth in agricultural production and second in agricultural exports in the world[1].
However, not all relevant issues related to the subject have received proper attention. This is the case, for example, of the use of arbitration as an appropriate dispute resolution method within the agribusiness sector.
Some of the many disputes related to agribusiness arise from leasing and partnership agreements, contracts for transportation and disposal of production, international purchase and sale agreements, mergers and acquisitions of agricultural companies, and intellectual property rights. Arbitration, undoubtedly, reveals itself as a possible means for such cases, and as an appropriate and interesting tool for conflict resolution.
Important elements to be considered when choosing arbitration include the possibility of choosing arbitrators with expertise in the area; the speed of resolution of the conflict compared to the judiciary, since the arbitration award is non-appealable; freedom for the parties to shape the procedure, and the incentive for communication and cooperation between the parties.
Despite the clear benefits, arbitration is still yet to be demanded by agribusiness[2] which may be due to a lack of knowledge of the benefits involved, or even the fear of high procedural costs.
In this context, it may be appropriate to highlight some of the advantages that the flexibility of arbitration may provide. This is the case, for example, with the option of the so-called “expedited arbitration procedure”.
Expedited arbitration is a type of proceeding that is conducted in a faster manner, with reduced deadlines and costs. In such cases, the arbitral institutions (i) limit its application to claims of up to a certain value; (ii) shorten the deadlines or the maximum duration of the proceedings; (iii) restrict the means of proof; and (iv) limit the number of hearings.
The other option is arbitration conducted by a sole arbitrator. This tends to be faster than when conducted by three arbitrators because the practice of the acts and the making of the decisions are concentrated in a single person.
Both procedures entail significant cost savings compared to the ordinary procedure with a three-arbitrator arbitral panel[3].
The combination of the ways addressed herein may offer a new possibility, that is faster, accessible, and palatable for the use of arbitration in conflicts in general. Especially in the field of agribusiness, in which greater efficiency is sought through the use of the best techniques and state-of-the-art expertise, the possibility of making use of an equally efficient means of conflict resolution appears as an advantage.
Coauthors: Patricia Trompeter Secher and Julia Guimarães Rossetto
