UN: General Assembly Adopts the United Nations Convention on Transparency in Treaty-based Investor-State Arbitration

The United Nations General Assembly adopted the United Nations Convention on Transparency in Treaty-based Investor-State Arbitration ("the Convention") on 10 December 2014. The General Assembly authorized the opening for signature of the Convention at a signing ceremony to be held on 17 March 2015 in Port Louis, Mauritius, upon which the Convention would be open for signature.

UNCITRAL undertook work on transparency in treaty-based investor-State arbitration as from 2010, and adopted in 2013 the Rules on Transparency in Treaty-based Investor-State Arbitration ("Transparency Rules"). The Transparency Rules represent a fundamental change from the status quo of arbitrations conducted outside the public spotlight. Indeed, confidentiality is often a valued feature of commercial arbitration. However, in investor-State disputes, the arbitration involves a State and often issues of public interest, as well as taxpayer funds. Acknowledging the fundamental role of the public as a stakeholder in investor-State disputes, UNCITRAL undertook the drafting of the Transparency Rules to provide a level of transparency and accessibility to the public of these disputes that is to date unprecedented. The Rules are also innovative in their approach to balancing the public interest in an arbitration involving a State, and the interest of the disputing parties in a fair and efficient resolution of their dispute.

The Convention constitutes the efficient and flexible mechanism by which the Transparency Rules will apply to disputes arising under the existing 3,000 bilateral and multilateral investment treaties currently in force. Together with the Rules on Transparency, the Convention contributes to the enhancement of transparency in treaty-based investor-State arbitration, and to the dissemination of knowledge about peaceful dispute resolution proceedings - which affect critical public sectors such as health, water and sanitation, transportation and agriculture - thereby engaging and empowering individuals and communities directly affected by them.