Colombia Introduces Executive Arbitration and Restores Arbitral Jurisdiction Over State Contract Disputes
Recent legislative and judicial developments have broadened access to arbitration in Colombia, providing businesses with greater flexibility to resolve and enforce disputes.
Colombia has taken two significant steps toward strengthening its arbitration framework, providing businesses with broader options to resolve and enforce disputes. Law 2540 of 2025 introduces executive arbitration (Arbitraje Ejecutivo) and, in certain cases, allows domestic arbitral tribunals to enforce their own awards. In addition, a landmark Constitutional Court decision has restored arbitral jurisdiction over economic disputes arising from state contracts.
As of February 27, 2026, Law 2540 allows enforcement proceedings to be conducted before an arbitral tribunal, where the legal requirements—most notably, an arbitration agreement—are satisfied. As a result, businesses now have access to a faster enforcement route to recover outstanding debts, reducing their reliance on the congested ordinary court system.
Among the reform's most practical innovations is the possibility, under Article 28, for a domestic arbitral award to be enforced by the same tribunal that rendered it, provided that the request is filed within 10 business days from the notification of the award. If the deadline is missed, enforcement through arbitration remains available, but creditors must commence a new executive arbitration before a newly constituted tribunal. Companies relying on arbitration should pay close attention to this deadline, as missing it may result in the loss of procedural benefits associated with enforcement before the original tribunal.
A further development comes from the Constitutional Court (SU-142 of 2026), which has strengthened the role of arbitration by restoring arbitral jurisdiction over claims concerning the effects of unilateral administrative acts issued under state contracts. Previously, the Council of State held that the economic effects of such acts were inseparable from the acts themselves and therefore fell within the exclusive jurisdiction of administrative courts. Reversing that approach, the court confirmed that these disputes may be resolved through arbitration, as long as the legality of the administrative act is not challenged. The decision provides greater certainty for businesses contracting with public entities, by restoring access to arbitration in certain disputes.
Taken together, these developments significantly enhance the availability and effectiveness of arbitration in Colombia. Businesses should review their existing arbitration agreements and consider these innovations to fully take advantage of the new framework.
