Mediation In
Bahía Negra, Alto Paraguay

Legal Framework

Mediation in Paraguay follows Law No. 1879/2002 on Arbitration and Mediation. Following the 2025 reform with Law No. 7561/2025, Law No. 1879/2002 now governs only mediation, while arbitration is subject to the new framework. The law recognises partial mediation agreements, allowing the settled aspects of a dispute to be excluded from litigation (Article 61). It regulates the operation of Mediation Centres (Articles 63–64) and sets forth eligibility criteria and ethical guidelines for mediators (Article 61). Law N° 7399/2024, published on 23 December 2024, implements Paraguay's obligations under the Singapore Convention on Mediation. The bill was approved by the Honorable Chamber of Senators on 13 August 2024 and sanctioned by the Honorable Chamber of Deputies on 26 November 2024. Paraguay enacted Law No. 1879/2002 on Arbitration and Mediation on April 24, 2002, inspired almost entirely by the UNCITRAL Model Law. As a member of MERCOSUR, Paraguay has ratified several arbitration instruments including the Arbitration Agreement (Common Market Council Decision No. 3/98), ratified by Law 3303/2007.

While Paraguay operates under this legal framework, The Olive Branch's remote mediators bypass local court backlogs by providing swift, confidential, and mutually agreed-upon resolutions online.

Court System

The 2025 reform with Law No. 7561/2025 addressed interpretative and practical difficulties encountered under the previous law, particularly regarding judicial intervention, the allocation of competence between courts and arbitral tribunals, and the enforceability of arbitral awards. The legislative intent was to address challenges arising from deviations from the UNCITRAL Model Law's principles, which resulted in unnecessary uncertainty and broader judicial intervention than originally intended. The reform seeks to realign Paraguayan arbitration law with the 2006 version of the UNCITRAL Model Law and comparative developments in Latin America and Europe. A key legislative goal is to provide a clearer, pro-arbitration framework that fosters coordination between the judiciary and arbitral tribunals. Throughout the statute, the principle of limited judicial intervention is reinforced. The law provides that while a challenge to an arbitrator is pending, the arbitral tribunal, including the challenged arbitrator, may continue the arbitral proceedings and make an award, reinforcing procedural continuity and preventing dilatory tactics.

Mediator Regulations

Law No. 1879/2002 sets forth eligibility criteria and ethical guidelines for mediators (Article 61). The law regulates the operation of Mediation Centres (Articles 63–64). Specific certification requirements for mediators are detailed in the eligibility criteria provisions. The law recognises partial mediation agreements, allowing the settled aspects of a dispute to be excluded from litigation, which provides flexibility in mediation outcomes. Mediation Centres are regulated under Articles 63-64 of the law, providing institutional framework for mediation services. The ethical guidelines for mediators ensure professional standards in mediation practice.

Cultural Approach

Paraguayan mediation culture is supported by a comprehensive legal framework that recognises partial mediation agreements and regulates Mediation Centres. The implementation of the Singapore Convention through Law N° 7399/2024 demonstrates commitment to international mediation standards. The 2025 reform addressing judicial intervention issues indicates a cultural shift toward greater respect for alternative dispute resolution autonomy. The alignment with UNCITRAL Model Law 2006 reflects openness to international best practices. The membership in MERCOSUR and ratification of regional arbitration instruments indicates regional integration in dispute resolution practices. The cultural approach values efficient alternatives to formal litigation with appropriate judicial support.

Typical Costs

Specific fee structures for mediation in Paraguay are not detailed in available sources. Mediation Centres regulated under Articles 63-64 of Law No. 1879/2002 would have fee structures determined by individual centres. No specific hourly or daily rates are documented in available sources. The emphasis on mediation as an alternative to litigation suggests cost effectiveness compared to court proceedings. The regulatory framework with ethical guidelines and eligibility criteria indicates professional standards that may affect fee structures. No specific cost provisions are documented in available sources.