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UNCITRAL

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54 views5 pages

UNCITRAL

Uploaded by

Saumya Singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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UNCITRAL

Introduction to UNCITRAL
● Establishment: UNCITRAL was established by the UN General Assembly
through Resolution 2205 (XXI) on December 17, 1966.
● Purpose: Its primary mandate is to promote the progressive harmonization
and unification of international trade law, facilitating smoother and more
predictable international trade relations.
● Mission: To prepare and promote the use of legislative and non-legislative
instruments across key areas of commercial law, such as:
o Dispute resolution
o International contract practices
o Transport
o Insolvency
o Electronic commerce
o International payments
o Secured transactions
o Procurement
o Sale of goods
● Global Impact: UNCITRAL is recognized as the core legal body within the UN
system for international trade law. It provides legal frameworks accepted by
diverse legal traditions and varying levels of economic development,
promoting stability in global trade.
1. Origin, Mandate, and Membership
A. Origin
● UNCITRAL was born out of the need for a coordinated legal framework for
international trade, given the growing economic interdependence across
nations.
● The goal was to reduce the legal obstacles posed by differing national laws,
helping to modernize trade law and facilitate international investment.
B. Mandate
UNCITRAL is tasked with:
1. Coordination: Bringing together the efforts of various international
organizations involved in international trade law.
2. Promoting Participation: Encouraging wider state participation in existing
international conventions and broader acceptance of model laws.
3. Developing Legal Instruments: Drafting and promoting new conventions,
model laws, and uniform laws, while collaborating with other relevant
organizations.
4. Uniform Interpretation: Ensuring consistent interpretation and application of
international trade law through guidance and case law.
5. Dissemination of Information: Collecting and sharing national legislation
and modern legal developments related to international trade.
6. Collaboration with UNCTAD: Working closely with the United Nations
Conference on Trade and Development (UNCTAD) and other UN bodies.
C. Membership
● Initial Membership: Started with 29 member states.
● Expansion: Grew to 36 members in 1973, and by 2002, the number reached
60.
● Diversity of Representation: The current 60 members represent a broad range
of legal systems and economic development levels:
14 African states
14 Asian states
8 Eastern European states
10 Latin American and Caribbean states
14 Western European and other states

2. Organization and Methods of Work


A. UNCITRAL Sessions
● Annual Sessions: UNCITRAL holds annual plenary sessions alternately in
New York and Vienna.
● Commission Structure: The commission's bureau includes a chairperson,
three vice-chairpersons, and a rapporteur, elected by member states.
Observers from non-member states and intergovernmental and non-
governmental organizations are also invited to attend.
B. Working Groups
● Role: These groups are responsible for developing specific legal texts or
addressing particular areas of international trade law. Each working group
typically focuses on specific subjects such as arbitration, insolvency,
electronic commerce, and procurement.
● Operation: Working groups report to UNCITRAL during its annual sessions.
Delegates from member states serve as chairpersons and rapporteurs, and
the secretariat supports their activities by preparing working papers and drafts.
C. Secretariat
● Function: The International Trade Law Division of the UN Office of Legal
Affairs in Vienna serves as the secretariat for UNCITRAL. The secretariat
assists by conducting research, preparing studies and reports, organizing
meetings, and drafting legislative texts.
D. Decision-Making Process
● Decisions are usually made by consensus. Non-member states and
observers contribute to the discussions, but decisions are ultimately taken by
member states.
3. Techniques for Harmonization and Modernization of Trade Law
A. Legislative Techniques
1. Conventions:
Legally binding instruments that require states to ratify and incorporate
them into their national legal systems.
Examples include the United Nations Convention on Contracts for the
International Sale of Goods (CISG) and the United Nations Convention
on the Carriage of Goods by Sea (Hamburg Rules).
2. Model Laws:
These are legislative texts recommended to states for adoption,
allowing for some flexibility to suit local circumstances.
Examples include the UNCITRAL Model Law on International
Commercial Arbitration and the Model Law on Electronic Commerce.
3. Legislative Guides and Recommendations:
These provide principles and guidance on legislative issues but do not
specify binding obligations.
The Legislative Guide on Insolvency Law and the Legislative Guide on
Secured Transactions are key examples.
4. Model Provisions:
Specific provisions that help states when updating conventions or
drafting new ones. For instance, UNCITRAL formulated model
provisions on liability limits in international transport conventions.
B. Contractual Techniques
● UNCITRAL also develops standard contractual clauses and procedural rules.
The UNCITRAL Arbitration Rules and UNCITRAL Conciliation Rules are
examples of international standard contract rules that streamline dispute
resolution procedures.
C. Explanatory Techniques
1. Legal Guides:
UNCITRAL produces guides that help parties understand key legal
issues in drafting international contracts. For example, the Legal Guide
on Drawing Up International Contracts for the Construction of
Industrial Works provides guidance on drafting contracts for industrial
projects.
2. Practice Guides:
Practical guides such as the Practice Guide on Cross-Border Insolvency
Cooperation help courts and practitioners navigate complex
international legal issues.
3. Interpretative Declarations:
UNCITRAL sometimes adopts declarations to achieve uniform
interpretation of international legal texts. This was done, for instance,
in interpreting the New York Convention on arbitral awards.
4. UNCITRAL’s Legal Instruments
● CISG: The United Nations Convention on Contracts for the International Sale
of Goods (CISG) is one of UNCITRAL’s most successful conventions,
governing contracts for the international sale of goods and promoting
uniformity across legal systems.
● Arbitration and Conciliation Rules: UNCITRAL's Arbitration Rules (revised in
2010) and Conciliation Rules (1980) provide an effective dispute resolution
framework for international commercial disputes.
● Electronic Commerce Laws: The Model Law on Electronic Commerce and the
Convention on the Use of Electronic Communications in International
Contracts standardize legal frameworks for online trade and digital
transactions.
5. Case Law on UNCITRAL Texts (CLOUT)
● CLOUT: A database system established to collect and disseminate court
decisions and arbitral awards related to UNCITRAL legislative texts.
● Purpose: CLOUT helps promote the uniform interpretation and application of
UNCITRAL’s conventions and model laws, contributing to global legal
coherence.
● Case Law Examples: The CISG and Model Law on International Commercial
Arbitration are among the most frequently cited UNCITRAL texts in CLOUT.
6. Technical Assistance and Law Reform
● Law Reform Assistance: UNCITRAL assists countries in reforming and
modernizing their legal systems to comply with international standards.
● Capacity Building: Training programs, seminars, and workshops are
organized to help states implement UNCITRAL’s instruments.
● Regional Centres: UNCITRAL’s regional centers, such as the Regional Centre
for Asia and the Pacific, are key in extending technical assistance and
fostering legal reform in specific regions.
7. Coordination with Other Organizations
● Collaboration: UNCITRAL works closely with other international
organizations such as the World Trade Organization (WTO), UNCTAD, and
World Intellectual Property Organization (WIPO), avoiding duplication of
efforts and ensuring coherent development of international trade law.
● Joint Projects: UNCITRAL collaborates on specific projects, such as
developing international insolvency standards with the World Bank or
engaging in the formulation of secured transactions law with UNIDROIT.

Conclusion
UNCITRAL plays a pivotal role in shaping the landscape of international trade law by
harmonizing diverse legal traditions, modernizing outdated laws, and providing clear
frameworks for dispute resolution, commercial transactions, and arbitration. Its
legislative instruments, such as conventions and model laws, are widely adopted by
states, facilitating more efficient and predictable international trade. With its ongoing
initiatives and collaborations, UNCITRAL continues to adapt to emerging legal
challenges and advances in global commerce.

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