Working Group III of the United Nations Commission on International Trade Law (UNCITRAL Working Group III) has long been engaged in systemic reform of investor-state dispute settlement (ISDS). The negotiations involve dozens of states and key international organisations; the aim is to address the long-criticised aspects of the existing model of investment arbitration.
The proposals under discussion include in particular: the establishment of a permanent Multilateral Investment Court, the introduction of an appellate mechanism, refinement of rules on arbitrator independence and ethics, greater transparency of proceedings, and strengthening the role of third-party funding.
ISDS reform has an immediate impact not only on parties to investment disputes, but also on the broader perception of international arbitration as an institutional tool for resolving cross-border conflicts. PRIAC monitors developments within UNCITRAL and follows the proposals under discussion in light of their potential impact on institutional practice in Europe.