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Establishment of a Multilateral Investment Court

I.EU internal developments

Adoption of Commission Recommendation and Impact Assessment

13 September 2017

• Commission adopts and publishes the Recommendation for a Council Decision authorising the opening of negotiations for a Convention establishing a multilateral court for the settlement of investment disputes and draft negotiating directives

• Commission releases Impact Assessment Report

All documents are available at: http://trade.ec.europa.eu/doclib/press/index.cfm?id=1608

Adoption and publication of negotiating directives

20 March 2018

• Council adopts negotiating directives authorising the Commission to open negotiations for a Convention establishing a multilateral court for the settlement of investment disputes

• Commitment to transparency: First negotiating directives to be published upon adoption

The negotiating directives are available at:http://data.consilium.europa.eu/doc/document/ST-12981-2017-ADD-1-DCL-1/en/pdf

II.External developments

UNCITRAL discussions & transparency

UNCITRAL (United Nations Commission on International Trade Law) commitment to transparency and openness

• Participation open to all UN members and any interested party (international/regional organisations, civil society)

• Observer status

• Publication of meeting reports and audio recordings

More information: http://www.uncitral.org/uncitral/index.html

UNCITRAL WG III mandateMandate:

I. Identify and consider concerns regarding ISDS

II. Consider whether reform is desirable in the light of any identified concerns

III. If the Working Group concludes that reform is desirable, develop any relevant solutions to be recommended to the Commission

Audio recordings of full meetings available at: http://www.uncitral.org/uncitral/audio/meetings.jsp

More information and documents:https://uncitral.un.org/en/working_groups/3/investor-state

UNCITRAL WG III workNovember 2017: First meeting

• Election of the Chair

• Good substantive discussions on step I of the mandate (identification of concerns of ISDS)

• Specific issues addressed included duration and costs of proceedings, transparency and consistency of case law

• UNCITRAL Secretariat note on a possible reform of ISDS: https://documents-dds-ny.un.org/doc/UNDOC/LTD/V17/067/48/PDF/V1706748.pdf?OpenElement

UNCITRAL WG III workWorking document from the European Union on possible reform of ISDS available in all UN languages:

Arabic: https://documents-dds-ny.un.org/doc/UNDOC/LTD/V17/088/30/PDF/V1708830.pdf?OpenElement

Chinese: https://documents-dds-ny.un.org/doc/UNDOC/LTD/V17/088/31/PDF/V1708831.pdf?OpenElement

English: https://documents-dds-ny.un.org/doc/UNDOC/LTD/V17/088/32/PDF/V1708832.pdf?OpenElement

French: https://documents-dds-ny.un.org/doc/UNDOC/LTD/V17/088/33/PDF/V1708833.pdf?OpenElement

Russian: https://documents-dds-ny.un.org/doc/UNDOC/LTD/V17/088/34/PDF/V1708834.pdf?OpenElement

Spanish: https://documents-dds-ny.un.org/doc/UNDOC/LTD/V17/088/35/PDF/V1708835.pdf?OpenElement

UNCITRAL WG III workApril 2018: Second meeting

• Continued and finalised discussions on step I of the mandate. Specific issues addressed include:

• Limited review of ISDS decisions

• Appointment of arbitrators: lack of guarantees of independence and impartiality, limited pool of individuals, lack of transparency in the appointment process, double-hatting, low sensitivity of arbitrators towards public interest matters.

• Third-party funding

• Finalisation of step I is without prejudice to additional problems of ISDS that may be raised and will be examined by the WG further down the process

UNCITRAL WG III work29 October – 2 November 2018: Third meeting

• The WG essentially concluded discussions on step II of the mandate (desirability of reform) as per the Secretariat's notes

• The WG agreed that reform is desirable to address concerns identified in relation to:

1. Lack of consistency, coherence, predictability and correctness of ISDS decisions

2. Arbitrators and decision-makers

3. Cost and duration of ISDS cases

• These concerns are without prejudice to additional concerns (e.g. third party funding) that will continue to be discussed

UNCITRAL WG III work29 October – 2 November 2018: Third meeting

Secretariat notes by theme:

• ISDS reform: http://www.uncitral.org/pdf/english/workinggroups/wg_3/WGIII-36th-session/149_main_paper_7_September_DRAFT.pdf

• Consistency and related matters: https://documents-dds-ny.un.org/doc/UNDOC/LTD/V18/056/80/PDF/V1805680.pdf?OpenElement

• Independence and impartiality of arbitrators: http://www.uncitral.org/pdf/english/workinggroups/wg_3/WGIII-36th-session/WP_151.pdf

• Appointment of arbitrators and related matters: https://documents-dds-ny.un.org/doc/UNDOC/LTD/V18/057/58/PDF/V1805758.pdf?OpenElement

• Costs and duration of proceedings: https://documents-dds-ny.un.org/doc/UNDOC/LTD/V18/057/51/PDF/V1805751.pdf?OpenElement

UNCITRAL WG III next stepsApril 2019: Fourth meeting

• Expectation is the WG will finalise discussions on third-party funding, as per the Secretariat’s note, and any other concerns

• Expectation is discussions will move to step III of the mandate (design of solutions to reform ISDS). Expected topics of discussion:

• Work plan of the next WG sessions

• Reform options submitted by delegations

UNCITRAL WG III next stepsApril 2019: Fourth meeting

Secretariat notes on:

• Third-party funding: http://undocs.org/en/A/CN.9/WG.III/WP.157

• Work plan options: http://undocs.org/en/A/CN.9/WG.III/WP.158

Submissions by the EU and its Member States (available in all UN languages):

• “Process paper” on the suggested work plan of the next WG sessions: http://undocs.org/en/A/CN.9/WG.III/WP.159

• “Substance paper” on the proposal to establish a Multilateral Investment Court: http://undocs.org/en/A/CN.9/WG.III/WP.159/Add.1

UNCITRAL WG III next stepsApril 2019: Fourth meeting

Submissions by other delegations:

• Indonesia: http://undocs.org/en/A/CN.9/WG.III/WP.156

• Thailand: http://undocs.org/en/A/CN.9/WG.III/WP.162

• Chile, Israel and Japan: https://uncitral.un.org/sites/uncitral.un.org/files/163-as_submitted.pdf

• Morocco: https://uncitral.un.org/sites/uncitral.un.org/files/wp.161_as_sub_0.pdf

III.Exchange of views