Latin American companies opposed settlements on a transnational basis in the past, he says, because of a mistrust of North American and European arbitrators who were not familiar or empathetic with the Latin American point of view. However, Wilner says alternative methods of dispute resolution have become more prevalent in recent years as privatization and liberalization have made Latin American economies similar to those of the United States and European nations. Different systems of law in Argentina and the United States have also led Argentine companies to put more faith in arbitration, says M. Stuart Sutherland, an attorney with Troutman Sanders, LLP., who represents U.S. financial interests in Latin America. Under Argentina's system of civil law, direct damages are significantly less than damages would be under the U.S. system of common law. As a result, foreign companies are afraid of litigation in the U.S. and are opting to settle disputes through arbitration.
Argentine contracts are less specific under civil law, which is built on a collection of statutes.
U.S. contracts tend to be more specific, because they must refer to many precedents that comprise the body of U.S. common law. Understanding the subtle cultural, social and legal cultural differences is what makes an attorney valuable to a company dealing in Latin America. Harlan Davis, director of the Office of International Development at UGA, understands that the important, but often subtle cultural differences can make or break business deals or political negotiations. The Reason Helping U.S. lawyers understand the processes in Mercosur will ultimately assist companies looking to do business in the market, says Rueben Patto, consul general of Argentina in Atlanta. Patto says the aim of his office is to promote business between Argentina and companies in the southeast United States.