Colombian Law 2540/2025 Expands Arbitral Power to Enforcement Proceedings
Colombia has enacted Law 2540/2025, a significant reform in its arbitration framework, allowing arbitration to extend into enforcement proceedings. Traditionally, enforcement was a domain reserved for courts, but this law introduces a procedural framework for enforcement arbitration. The law aims to decongest the judicial system by enabling arbitrators to handle enforcement, a move that challenges the conventional view that arbitrators lack enforcement authority. The law establishes an 'árbitro ejecutor' to conduct enforcement proceedings and allows for interim measures through an 'árbitro de medidas cautelares previas'. It also broadens the scope of arbitration agreements to include co-debtors and guarantors, enhancing the practical value of arbitration by consolidating related claims in a single forum. Consumer protections are included, requiring clear disclosure of arbitration agreements and introducing safeguards in financial and housing sectors. 
