UNIS/L/344
13 July 2023
VIENNA, 12 July (UN Information Service) – More than 373 representatives of States and international organizations gathered at the Vienna International Centre to finalize the first set of investor-State dispute settlement (ISDS) reform elements during the annual session of the United Nations Commission on International Trade Law (UNCITRAL).
At the end of the first week of its deliberations, the Commission adopted four legal texts: the UNCITRAL Model Provisions on Mediation, the UNCITRAL Guidelines on Mediation for International Investment Disputes, the UNCITRAL Code of Conduct for Arbitrators in International Investment Dispute Resolution, and the UNCITRAL Code of Conduct for Judges in International Investment Dispute Resolution.
The adoption of these texts comes after several years of preparation by and discussions at UNCITRAL Working Group III, which was entrusted in 2017 with a broad mandate to work on the possible reform of ISDS. This year marks an important milestone as the Working Group is in its third phase of work to develop relevant reform solutions and present them to the Commission. The Working Group continues to benefit from a wide breadth of expertise involving multiple and various stakeholders in the ISDS community, including States, institutions, and groups representing practitioners and investors, respectively.
Finalization and adoption of texts
UNCITRAL Model Provisions and UNCITRAL Guidelines on Mediation for International Investment Disputes
The UNCITRAL Model Provisions on Mediation and the UNCITRAL Guidelines on Mediation for International Investment Disputes seek to encourage the use of mediation for resolving international investment disputes. Recommended for inclusion in investment treaties, the Model Provisions allow parties to exercise control over the mediation process to reach a self-tailored outcome and to preserve their relationship. The Guidelines provide practical guidance to parties on the use of mediation by listing and briefly describing issues that should be considered when undertaking investment mediation.
UNCITRAL Code of Conduct for Arbitrators
The UNCITRAL Code of Conduct for Arbitrators in International Investment Dispute Resolution provides mandatory ethical rules for arbitrators involved in international investment disputes. It seeks to promote the integrity of the ISDS process and reduce conflicts of interest, which have often given rise to criticism about the legitimacy of the ISDS system. Its key provisions reinforce the duty of independence and impartiality of arbitrators, broaden the disclosure requirements, and regulate the practice of double-hatting. The Code is accompanied by a commentary that will guide users and practitioners in its application and compliance thereof.
UNCITRAL Code of Conduct for Judges
The UNCITRAL Code of Conduct for Judges in International Investment Dispute Resolution aims to provide a comprehensive set of ethical rules for members of a potential standing mechanism established to resolve investment disputes. The Commission adopted the Code in principle, mindful that Working Group III is continuing to consider whether to recommend the possible establishment of a standing mechanism to the Commission as part of the ISDS reform. The Code is also accompanied by a commentary.
The annual session of the Commission will end on 21 July 2023, at which time the UNCITRAL Model Provisions on Investment Mediation and the two Codes of Conduct will be published as Annexes to the report of the session (A/78/17) and separately on the UNCITRAL website: uncitral.un.org. The UNCITRAL Guidelines on Investment Mediation and the commentaries to the Codes will be revised based on the deliberations and are expected to be published in late 2023 as UN publications in all official UN languages. The Commission recommended that these texts be presented to the General Assembly for endorsement at its forthcoming 78th session.
The European Union, the French Government and the Swiss Agency for Development and Cooperation provided financial assistance to support the participation of developing States in the negotiations. Other donors wishing to contribute should contact the UNCITRAL secretariat for further information.
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The United Nations Commission on International Trade Law (UNCITRAL) is the core legal body of the United Nations system in the field of international trade law. Its mandate is to remove legal obstacles to international trade by progressively modernizing and harmonizing trade law. It prepares legal texts in a number of key areas such as international commercial dispute settlement, electronic commerce, insolvency, international payments, sale of goods, transport law, procurement and infrastructure development. UNCITRAL also provides technical assistance to law reform activities, including assisting Member States to review and assess their law reform needs and to draft the legislation required to implement UNCITRAL texts. The UNCITRAL Secretariat is located in Vienna, Austria, and maintains a website at uncitral.un.org.
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For more information please contact:
José Angelo Estrella Faria
Principal Legal Officer and Head, Legislative Branch
UNCITRAL Secretariat
Email: joseangelo.estrella-faria[at]un.org
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