Brazil has been stepping up its efforts to develop a harmonious relationship between arbitration and the judiciary (see Legal update, Brazilian Supreme Court hosts event highlighting the importance of mutual support between arbitration and the judiciary), dealing with a growing complexity of issues. Since arbitration continues to gain credibility, Brazil has also been modernising its federal legislation in recent years, expressly allowing for the participation of the state and state-owned entities in arbitration.

Even though the Brazilian Arbitration Act 1996 (Law. N. 9.307/96) has never prohibited the participation or involvement of the state and state-owned entities in arbitration (see Article, The Brazilian Arbitration Act 1996), modifications to federal legislation can be considered an important step towards overcoming this issue. In fact, federal statutes 8,666 (public tender contracts) and 8,987 (public utility contracts), now have specific provisions for resolving disputes by arbitration. Since their enactment, legislative adaptations have been undertaken to permit, for instance, arbitration involving government departments, such as the National Oil Agency (ANP) or the National Electric Energy Agency (ANEEL). Another recent statute, 11,079, which governs joint-venture agreements between direct or indirect public administration entities and privately-owned companies (PPP), also allows for arbitration agreements.

On 19 and 20 September 2011, the Brazilian Arbitration Committee (CBAr) held the 10th Arbitration Congress, which focused on the relationship between the state and state-owned entities and their submission to arbitration.

The Congress included a number of debates, most notably on:

Another key feature of the event was the presence of justices of the Superior Court of Justice and the Federal Supreme Court, as debaters. There were also a number of delegates who were government representatives from regulatory agencies and other departments, congressmen, scholars and legal practitioners from several countries and legal backgrounds. The presence of representatives from different fields of knowledge broadened the scope of the event and also highlights the common effort to take arbitration in Brazil to the next level.

The results of the Congress are already visible: immediately after the Congress, the Federal government, its Ministry of Justice and the Secretariat for Legislative Affairs established a co-operation agreement with CBAr for the latter to provide specific legal assistance on legislative matters involving arbitration. The main elements for this evolution have already been furnished, and considering the favourable momentum of case law, it is safe to say that Brazilian arbitration is maturing as a whole.