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Enforcing Contracts in South America? (Updated 2026)

Enforcing Contracts in South America? (Updated 2026)

The Enforcing Contracts topic assessed how efficiently a country’s courts handle a commercial sale dispute over the quality of goods. It tracked the time, cost and number of procedures from the moment the plaintiff files the lawsuit until payment is received.

The World Bank Group published those rankings in its Doing Business reports. The last full round of data was completed in May 2019 and released in Doing Business 2020. In September 2021, the World Bank discontinued Doing Business after data irregularities and replaced it with a new flagship called Business Ready (B-READY).

Last available Enforcing Contracts ranks (Doing Business 2020)

Lower rank = easier to enforce a contract in court.

South America

CountryRank (of 190)
Mexico43
Chile54
Brazil58
Paraguay72
Peru83
Argentina97
Uruguay104
Bolivia109
Panama141
Colombia177

3:09 PM

For relativity:

CountryRank
Canada96*
China5*
Taiwan, China11*
Israel25*
Italy122*
India163*
Bahamas82

*Comparator ranks above are the overall Ease of Doing Business ranks where a precise Enforcing Contracts figure is not listed in the short regional extract; for contract enforcement specifically, Mexico, Chile and Brazil led the larger South American markets in DB2020. Always check the full country profile before relying on a single number.

Source: Doing Business 2020 – Latin America & Caribbean and Chile country profile.

What replaces it in 2026

B-READY no longer publishes a single “Enforcing Contracts” league table. It scores dispute resolution and related topics under a new methodology (Regulatory Framework, Public Services, Operational Efficiency).

Coverage for the region is rolling out in stages:

  • Already published: Colombia, Mexico, Paraguay and Peru (B-READY 2024); Uruguay and Ecuador (B-READY 2025)
  • Due in B-READY 2026: Argentina, Brazil, Chile, Bolivia, Panama and others

Read the current reports at worldbank.org/en/businessready/reports.

Practical points for buyers and sellers

Be aware that some countries, including Brazil, Colombia and Uruguay, have historically been restrictive about enforcing contracts in third-country courts. That can change, so treat any old rule as a starting point only.

For Brazil’s current commercial and dispute-resolution framework, see Thomson Reuters Practical Law – Brazil.

Argentina has been rewriting parts of its commercial framework since late 2023. Decree of Necessity and Urgency 70/2023 strengthened freedom of contract and limited judges’ ability to rewrite private agreements, and further Civil and Commercial Code reforms aimed at mediation, arbitration and private contracting have been under discussion into 2025. Treat this as a moving target and confirm with counsel before you rely on it.

World Bank reports remain a useful background read for anyone doing business in South America, because sooner or later you may need the courts (or arbitration) to enforce a broken contract. Always check with a local law firm on the current situation.

Where the law allows it, try to have contracts enforceable in jurisdictions that score well on dispute resolution, and consider arbitration clauses with a clear seat and rules.

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