On 17 December 2014, after approval by the Senate, the Paraguayan National Congress passed a law regarding the Applicable Law to International Contracts, which implements the Draft Hague Principles on Choice of Law in International Commercial Contracts (Draft Principles). This legislation is now before the Paraguayan Executive Branch for promulgation.
With the entry into force of this legislation, companies from around the world that conclude international contracts with Paraguayan companies will have the freedom of choosing the law applicable to their international contract, enhancing legal certainty and predictability in their contractual dealings.
Being the first State to implement the Draft Principles, Paraguay plays a pioneering role in bringing into operation an instrument, which works towards the uniform application of party autonomy in international commercial contracts.
It is hoped that the Draft Principles will receive official approval by the Hague Conference's Council on General Affairs and Policy in the near future. This will pave the way for more uniform standards in the enforcement of international contracts and the role party autonomy plays in such contracts.