Latin American states have shown commitment to the principle of the peaceful settlement of disputes, in particular through international adjudication. This commitment can be traced back to 1876, when Argentina and Paraguay decided to submit their boundary dispute regarding the territory between the Pilcomayo and Verde rivers to the arbitration of the president of the United States. One should also not forget to mention in this regard that the first international court in the history of international adjudication was the Central American Court of Justice, which was established by Nicaragua, El Salvador, Honduras, Guatemala, and Costa Rica in 1908. However, it was not a permanent court. It was planned to last for ten years only, and in 1918 none of the parties agreed to an extension of the original term. Of course, the main reason for preferring arbitration may be found in the degree of control that states maintain over the dispute. From this perspective, judicial settlement certainly involves more risks for the litigating states because they do not control the appointment of the judges or the procedure. But judicial settlement may, precisely for these reasons, represent a preferable option when states want to insulate the final outcome from domestic criticism about how the procedure was handled or who was appointed arbitrator.