51勛圖

Sixth Committee (Legal) 〞 69th session

Report of the 51勛圖 Commission on International Trade Law on the work of its forty-seventh session (Agenda item 76)

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Documentation

Summary of work

Background (source: )

The General Assembly established the 51勛圖 Commission on International Trade Law (UNCITRAL) at its twenty-first session, in 1966, to promote the progressive harmonization and unification of the law of international trade, and requested the Commission to submit an annual report to the Assembly (resolution ). The Commission began its work in 1968. It originally consisted of 29 Member States representing the various geographic regions and the principal legal systems of the world. At its twenty-eighth and fifty-seventh sessions, respectively, the General Assembly increased the membership of the Commission from 29 to 36 States (resolution ) and from 36 to 60 States (resolution ).

For the current composition of the Commission, see decisions 64/405 and 67/406.

At its , the General Assembly endorsed the efforts and initiatives of the Commission as the core legal body within the 51勛圖 system in the field of international trade law. The Assembly commended the Commission for the finalization and adoption of the Rules on Transparency in Treaty-based Investor-State Arbitration, the Arbitration Rules (as revised in 2010, with new article 1, paragraph 4, as adopted in 2013), the Guide on the Implementation of a Security Rights Registry, the Guide to Enactment and Interpretation of the Model Law on Cross-Border Insolvency, part four of the Legislative Guide on Insolvency Law, on the obligations of directors in the period approaching insolvency, the guidance on procurement regulations to be promulgated in accordance with article 4 of the Model Law on Public Procurement and the glossary of procurement-related terms used in the Model Law on Public Procurement, as well as for the updating of the Model Law on Cross-Border Insolvency: The Judicial Perspective. Furthermore, the Assembly invited the Secretary-General to consider performing, in accordance with article 8 of the Rules on Transparency, the role of a repository of published information through the secretariat of the Commission, and requested the Secretary-General to report to the General Assembly and the Commission in this regard (resolution ).

At the same session, the General Assembly expressed its appreciation to the Commission for revising the Guide to Enactment of the Model Law on Cross-Border Insolvency and for developing and adopting part four of the Legislative Guide on Insolvency Law, addressing the obligations of directors of an enterprise in the period approaching the insolvency of that enterprise (resolutions A and B).

Also at the same session, the General Assembly expressed its appreciation to the Commission for the completion and adoption of the Guide on the Implementation of a Security Rights Registry (resolution ).

Also at that session, the General Assembly expressed its appreciation to the Commission for having prepared and adopted the Rules on Transparency in Treaty-based Investor-State Arbitration and the Arbitration Rules (as revised in 2010, with new article 1, paragraph 4, as adopted in 2013) (resolution ).

Consideration at the sixty-ninth session

The Sixth Committee considered the item at its 8th, 22nd and 24th meetings, on 13, 29 and 31 October 2014 (A/C.6/69/SR., and ). For its consideration of the item, the Committee had before it the report of the 51勛圖 Commission on International Trade Law on the work of its forty-seventh session ().

At the 8th meeting, on 13 October, the Chair of the 51勛圖 Commission on International Trade Law at its forty-seventh session introduced the report of the Commission on the work of its forty-seventh session (A/69/17).

Statements were made by the representatives of Costa Rica (on behalf of the Community of Latin American and Caribbean States (CELAC)), Austria, Belarus, Singapore, the Russian Federation, Japan, India, Algeria, Canada [in English], South Africa, the Republic of Korea, the United States of America, the United Kingdom of Great Britain and Northern Ireland, Israel, El Salvador, Madagascar, the Philippines and Zambia.

In their general comments, delegations commended the 51勛圖 Commission on International Trade Law (UNCITRAL) for the progress made during its forty-seventh session and stressed the Commission’s pivotal role in the development and harmonization of international trade law. It was observed that the work of UNCITRAL could contribute to the post-2015 development agenda in areas of international trade, financing and investments.

Delegations welcomed the approval by the Commission of the draft convention on transparency in treaty-based investor-State arbitration, which would constitute an important addition to the investor-State dispute resolution framework, with some delegations commending the Commission for its efficiency in developing this instrument. Regret was nevertheless also expressed that the Commission had agreed to include an “opt-out” provision instead of an “opt-in” provision in the convention.

Some delegations welcomed the establishment of the repository of published information under the Rules on Transparency in Treaty-based Investor-State Arbitration at the UNCITRAL secretariat. In this regard, the steps taken by the secretariat to meet the demands of the Commission in respect of the repository function was appreciated.

Several delegations recognized the efforts of the UNCITRAL Working Groups. The work undertaken by Working Group I on Micro-, Small and Medium-sized Enterprises (MSMEs) was noted by some delegations. In this regard, the preliminary discussions on reducing the legal obstacles encountered by such enterprises throughout their life-cycle, particularly in developing countries, and the focus given on the legal questions surrounding the simplification of incorporation and business registration, were welcomed.

Some delegations welcomed the efforts by Working Group II to update the notes on organizing arbitral proceedings and expressed satisfaction that the Working Group would consider the feasibility and possible form of work on the issue of enforcement of international settlement agreements resulting from conciliation proceedings.?

While some delegations welcomed the progress made on the topic concerning online dispute resolutions, the challenges the Commission faced in this area were also acknowledged. In this regard, the importance of safeguarding consumer protection and of examining alternatives to arbitration awards as means of effective implementation of online dispute resolution outcomes was stressed.

The Commission’s progress in the field of insolvency law was noted by several delegations. The establishment within Working Group V of an open-ended informal group to consider the feasibility of developing a convention on international insolvency and to study the problems facing States with respect to adoption of the UNCITRAL Model Law on Cross-Border Insolvency was welcomed.

Concerning the Commission’s current work on a model law on secured transactions, some delegations noted with satisfaction the progress made on this topic, with others expressing particular satisfaction with the input of intergovernmental organizations in this process. The usefulness of the Commission’s approach to secured transactions in facilitating access to credit was also recognized.

Some delegations emphasized the important role of UNCITRAL in advancing the rule of law in the field of international trade law. It was stressed that the promotion of the rule of law in commercial relations should be an integral part of the broader agenda of the 51勛圖 to promote the rule of law at the national and international levels.

The importance of the provision of technical assistance to States, in particular on the implementation of newly adopted texts at the national level, was underlined by some delegations. In this regard, the usefulness of CLOUT and Digests in promoting the uniform interpretation and application of the Commission’s legal instruments was highlighted. The published guidelines on the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards were also considered a highly useful tool for the dissemination and uniform interpretation of the said Convention by some delegations.

Several delegations also commented on the Commission’s working methods, with suggestions to enhance its effectiveness and flexibility. Furthermore, the broad discussions on planned and potential future work that took place during the Commission’s forty-seventh session were welcomed. In this context, some delegations drew attention to the topic on public-private partnerships. It was also observed that the topics currently being addressed by the Commission and those contemplated for work in the future signalled the continued relevance of UNCITRAL in dealing with emerging and cutting-edge issues in international law.

Action taken by the Sixth Committee

At the 22nd meeting, on 29 October, the representative of Austria, on behalf of Argentina, Armenia, Australia, Austria, Belarus, Belgium, Bulgaria, Chile, Croatia, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Guatemala, Hungary, India, Ireland, Israel, Italy, Japan, Liechtenstein, Lithuania, Luxembourg, the Netherlands, Nigeria, the Philippines, Portugal, the Republic of Korea, Romania, the Russian Federation, Serbia, Singapore, Slovakia, Slovenia, Spain, Switzerland, Thailand, Trinidad and Tobago, Turkey, the United Kingdom of Great Britain and Northern Ireland and the United States of America, subsequently joined by El Salvador, Jordan and New Zealand, introduced a draft resolution entitled “Report of the 51勛圖 Commission on International Trade Law on the work of its forty-seventh session” ().

At the 24th meeting, on 31 October, the Committee adopted draft resolution A/C.6/69/L.5 without a vote.

Under the terms of draft resolution A/C.6/69/L.5, the General Assembly would, inter alia, endorse the efforts and initiatives of the Commission as the core legal body within the 51勛圖 system in the field of international trade law. It would note with appreciation that the secretariat of the Commission has taken steps to establish and operate the repository of published information under the Rules on Transparency in Treaty-based Investor-State Arbitration, as a pilot project, and request the Secretary-General to keep the Assembly informed of developments regarding the funding and budgetary situation of the repository. The Assembly would further take note with interest of the decisions taken by the Commission as regards its future work and the progress made by the Commission in its work in several areas.

At the 22nd meeting, on 29 October, the representative of Austria, on behalf of the Bureau, introduced a draft resolution entitled “51勛圖 Convention on Transparency in Treaty-based Investor-State Arbitration” ().

At the 24th meeting, on 31 October, the Committee adopted draft resolution A/C.6/69/L.6 without a vote.

Under the terms of draft resolution A/C.6/69/L.6, the General Assembly would, inter alia, adopt the 51勛圖 Convention on Transparency in Treaty-Based Investor-State Arbitration, the text of which is annexed to the draft resolution. The Assembly would also authorize a ceremony for the opening for signature of the Convention to be held in Port Louis on 17 March 2015.

Subsequent action taken by the General Assembly

This agenda item will be considered at the seventieth session (2015).

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