United Nations Commission on International Trade Law

(UNCITRAL)
When world trade began to expand dramatically in the 1960s, national governments
began to realize the need for a global set of standards and rules to harmonise and
modernise the assortment of national and regional regulations, which until then largely
governed international trade. hey turned to the !nited "ations, which in 1966
recognized the need for it to play a more active role in removing legal obstacles to the
flow of international trade and established the !nited "ations #ommission on
$nternational rade %aw &!"#$'(%). !"#$'(% has since become the core legal
body of the !nited "ations system in the field of international trade law.
*uch of the complex networ+ of international legal rules and agreements that affects
today,s commercial arrangements has been reached through long and detailed
consultations and negotiations organised by !"#$'(%. $ts aim is to remove or reduce
legal obstacles to the flow of international trade and progressively modernise and
harmonise trade laws. $t also see+s to coordinate the wor+ of organisations active in this
type of wor+ and promote wider acceptance and use of the rules and legal texts it
develops.
MEMBERSHIP
*embers are selected from among -tates *embers of the !nited "ations. !"#$'(%.s
original membership comprised /9 -tates and was expanded by the 0eneral (ssembly of
the !nited "ations in 1912 to 26 -tates and again in /00/ to 60 -tates. he expansion
reflected the broader participation and contribution by -tates beyond the then existing
member -tates and stimulated interest in !"#$'(%.s expanding wor+ programme.
-tructured to ensure that the various geographic regions and the principal economic and
legal systems of the world are represented, the 60 member -tates include 13 (frican
-tates, 13 (sian -tates, 4 5astern 5uropean -tates, 10 %atin (merican and #aribbean
-tates and 13 Western 5uropean and other -tates. he 0eneral (ssembly elects members
for terms of six years6 every three years the terms of half of the members expire. &$ndia is
currently a member state, its tenure due to expire in /016).
ORGANISATION AN METHOS O! "OR#
!"#$'(%.s wor+ is organised and conducted at three levels. he first level is
!"#$'(% itself, often referred to as the #ommission, which holds an annual plenary
session. he second level is the intergovernmental wor+ing groups, which to a large
extent underta+e the development of the topics on !"#$'(%.s wor+ programme, while
the third is the secretariat, which assists the #ommission and its wor+ing groups in the
preparation and conduct of their wor+.
A$ UNCITRAL (t%e Commission)
!"#$'(% carries out its wor+ at annual sessions held alternately in "ew 7or+ and
8ienna. he wor+ at these sessions typically includes finalization and adoption of draft
texts referred to the #ommission by the wor+ing groups6 consideration of progress
reports of the wor+ing groups on their respective pro9ects6 selection of topics for future
wor+ or further research6 reporting on technical assistance activities and coordination of
wor+ with other international organisations6 monitoring of developments in the #ase %aw
on !"#$'(% exts system &+nown as #%:!) and the status and promotion of
!"#$'(% legal texts6 consideration of 0eneral (ssembly resolutions on the wor+ of
!"#$'(%6 and administrative matters.
#omprising a chairperson, three vice;chairpersons and a rapporteur, the bureau of the
#ommission for the duration of each annual session represents each of the five regions
from which the members of the #ommission are drawn and is elected by the member
-tates.
$n addition to -tates members of !"#$'(%, !nited "ations *ember -tates that are not
members of !"#$'(%, as well as international and regional organisations &both
intergovernmental and non;governmental) with an interest in the topics under discussion
are invited to attend both !"#$'(% annual sessions and wor+ing group sessions as
observers.
he secretariat of !"#$'(% prepares a report of the proceedings at annual sessions,
which is formally adopted by !"#$'(% for submission to the 0eneral (ssembly. $n
accordance with the resolution establishing !"#$'(%, the annual report is also
provided to the rade and <evelopment =oard of the !nited "ations #onference on
rade and <evelopment &!"#(<) for comment.
B$ "or&in' 'ro()s
he substantive preparatory wor+ on topics on !"#$'(%.s wor+ programme is usually
assigned to wor+ing groups, which generally hold one or two sessions per year and report
on the progress of their wor+ to the #ommission. he membership of the wor+ing groups
currently includes all member -tates of !"#$'(%. :nce a topic has been assigned to a
wor+ing group, the wor+ing group is generally left to complete its substantive tas+
without intervention from the #ommission, unless it as+s for guidance or re>uests the
#ommission to ma+e certain decisions with respect to its wor+. (t each wor+ing group
session, member delegations select a chairperson and rapporteur from among member
delegations to preside over the wor+. he secretariat of each wor+ing group comprises
staff members of the !"#$'(% secretariat. he secretariat is responsible for preparing
wor+ing papers for wor+ing group meetings, providing administrative services to that
wor+ing group and reporting on wor+ing group sessions. 'eports are considered and
formally adopted at the end of each wor+ing group session for submission to the annual
session of !"#$'(%.
C$ Se*retariat
1. Work programme
he $nternational rade %aw <ivision of the :ffice of %egal (ffairs of the -ecretariat
provides the secretariat for !"#$'(%. :riginally located at !nited "ations
?ead>uarters in "ew 7or+, the <ivision was relocated to the !nited "ations :ffice at
8ienna in -eptember 1919, while formally remaining a part of the :ffice of %egal (ffairs
in "ew 7or+. @rofessional staff members of the <ivision include a small number of
>ualified lawyers from different countries and legal traditions, with the <irector of the
<ivision serving as the -ecretary of !"#$'(%.
o assist the wor+ of !"#$'(%, the secretariat underta+es a variety of different tas+s,
which include preparation of studies, reports and draft texts on matters that are being
considered for possible future inclusion in the wor+ programme6 legal research6 drafting
and revision of wor+ing papers and legislative texts on matters already included in the
wor+ programme6 reporting on #ommission and wor+ing group meetings6 and the
provision of a range of administrative services to !"#$'(% and its wor+ing groups. $n
order to assist it with the preparation of its wor+, the secretariat fre>uently see+s the
assistance of outside experts from different legal traditions, conducting ad hoc
consultations with individuals or convening meetings of groups of experts in a particular
field, as re>uired. -uch groups have included academics, practicing lawyers, 9udges,
ban+ers, arbitrators and members of various international, regional and professional
organisations.
2. Technical assistance to law reform
he wor+ of !"#$'(% does not end with the finalization and adoption of a text but, as
noted above, includes promotion of the wor+ of !"#$'(% and the use and adoption of
its legislative and non;legislative texts.
3. Other activities
he secretariat also assists the #ommission in its functions of coordinating and
promoting the wor+ of other organisations6 promoting the uniform interpretation of legal
standards through the #%:! system6 preparing and promoting !"#$'(%
publications6 and organizing special events.
4. Interns and visiting scholars
5ach year a limited number of persons who have recently obtained a law degree are given
the opportunity to wor+ as interns in the $nternational rade %aw <ivision. $nterns are
assigned specific tas+s in connection with !"#$'(%.s wor+ programme and pro9ects
being underta+en by the secretariat. $ndividuals participating in this programme are able
to familiarize themselves with the wor+ of !"#$'(% and to increase their +nowledge
of specific areas of international trade law. %egal scholars and practitioners may also
ma+e use of the !"#$'(% law library to wor+ on pro9ects related to international trade
law.
TRAE LA" TE+TS
!"#$'(% develops different types of texts to modernise and harmonise the law of
international trade. hese texts are generally legislative in nature, such as conventions,
model laws and legislative guides, or non;legislative texts such as contractual rules that
can be incorporated into commercial contracts and legal guides.
Convention: an agreement among -tates establishing obligations binding upon those
-tates that ratify or accede to it.
Model law: a set of model legislative provisions that -tates can adopt by enacting it into
national law.
Legislative guide: a text that provides guidance for the development of laws, discussing
relevant policy issues and choices and recommending appropriate legislative solutions.
Contractual rules: standard clauses or rules designed to be included in commercial
contracts.
Legal guide: a text that provides guidance for the drafting of contracts, discussing
relevant issues and recommending solutions appropriate to particular circumstances.
:ver the last /3 years, !"#$'(% has completed ma9or international texts on the sale of
goods, transport, dispute resolution, procurement and infrastructure development,
international payments, electronic commerce and insolvency.
-ome of the important texts with respect to dispute resolution areA
1. !"#$'(% (rbitration 'ules &1916)
/. !"#$'(% #onciliation 'ules &1940)
2. !"#$'(% *odel %aw on $nternational #ommercial (rbitration &194B)
3. !"#$'(% *odel %aw on $nternational #ommercial #onciliation &/00/)
1. !"#$'(% (rbitration 'ules &1916)
he !"#$'(% (rbitration 'ules provide a comprehensive set of procedural rules upon
which parties may agree for the conduct of arbitral proceedings arising out of their
commercial relationship and are widely used in ad hoc arbitrations as well as
administered arbitrations. he 'ules cover all aspects of the arbitral process, providing a
model arbitration clause, setting out procedural rules regarding the appointment of
arbitrators and the conduct of arbitral proceedings, and establishing rules in relation to the
form, effect and interpretation of the award.
he original !"#$'(% (rbitration 'ules were adopted in 1916 and have been used for
the settlement of a broad range of disputes, including disputes between private
commercial parties where no arbitral institution is involved, investor;-tate disputes,
-tate;to;-tate disputes and commercial disputes administered by arbitral institutions. $n
/006, the #ommission decided that the !"#$'(% (rbitration 'ules should be revised
in order to meet changes in arbitral practice over the last thirty years. he revision is
aimed at enhancing the efficiency of arbitration under the 'ules and does not alter the
original structure of the text, its spirit or drafting style.
he !"#$'(% (rbitration 'ules, as revised, have been effective since 1B (ugust /010.
hey include provisions dealing with, amongst others, multiple parties arbitration and
9oinder, liability, and a procedure to ob9ect to experts appointed by the arbitral tribunal. (
number of innovative features contained in the 'ules aim to enhance procedural
efficiency, including revised procedures for the replacement of an arbitrator, the
re>uirement for reasonableness of costs, and a review mechanism regarding the costs of
arbitration. hey also include more detailed provisions on interim measures. $t is
expected that the 'ules, as revised, will continue to contribute to the development of
harmonious international economic relations.
/. !"#$'(% #onciliation 'ules &1940)
(dopted by !"#$'(% on /2 Culy 1940, the !"#$'(% #onciliation 'ules provide a
comprehensive set of procedural rules upon which parties may agree for the conduct of
conciliation proceedings arising out of their commercial relationship. he 'ules cover all
aspects of the conciliation process, providing a model conciliation clause, defining when
conciliation is deemed to have commenced and terminated and addressing procedural
aspects relating to the appointment and role of conciliators and the general conduct of
proceedings. he 'ules also address issues such as confidentiality, admissibility of
evidence in other proceedings and limits to the right of parties to underta+e 9udicial or
arbitral proceedings whilst the conciliation is in progress.
2. !"#$'(% *odel %aw on $nternational #ommercial (rbitration &194B)
he *odel %aw is designed to assist -tates in reforming and modernising their laws on
arbitral procedure so as to ta+e into account the particular features and needs of
international commercial arbitration. $t covers all stages of the arbitral process from the
arbitration agreement, the composition and 9urisdiction of the arbitral tribunal and the
extent of court intervention through to the recognition and enforcement of the arbitral
award. $t reflects worldwide consensus on +ey aspects of international arbitration practice
having been accepted by -tates of all regions and the different legal or economic systems
of the world.
(mendments to articles 1 &/), 1, and 2B &/), a new chapter $8 ( to replace article 11 and
a new article / ( were adopted by !"#$'(% on 1 Culy /006. he revised version of
article 1 is intended to modernise the form re>uirement of an arbitration agreement to
better conform with international contract practices. he newly introduced chapter $8 (
establishes a more comprehensive legal regime dealing with interim measures in support
of arbitration.
3. !"#$'(% *odel %aw on $nternational #ommercial #onciliation &/00/)
(dopted by !"#$'(% on /3 Cune /00/, the *odel %aw provides uniform rules in
respect of the conciliation process to encourage the use of conciliation and ensure greater
predictability and certainty in its use. o avoid uncertainty resulting from an absence of
statutory provisions, the *odel %aw addresses procedural aspects of conciliation,
including appointment of conciliators, commencement and termination of conciliation,
conduct of the conciliation, communication between the conciliator and other parties,
confidentiality and admissibility of evidence in other proceedings as well as post;
conciliation issues, such as the conciliator acting as arbitrator and enforceability of
settlement agreements.