Sixth Committee (Legal) — 74th session

Report of the United Nations Commission on International Trade Law on the work of its fifty-second session (Agenda item 77)

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Documentation

Summary of work

Background (source: A/74/100)

At its twenty-first session, the General Assembly established the United Nations Commission on International Trade Law (UNCITRAL) to promote the progressive harmonization and unification of the law of international trade, and requested the Commission to submit an annual report to the Assembly (resolution 2205 (XXI)). The Commission began its work in 1968. It originally consisted of 29 Member States representing the various geographic regions and the principal legal systems of the world. At its twenty-eighth and fifty-seventh sessions, respectively, the Assembly increased the membership of the Commission from 29 to 36 States (resolution 3108 (XXVIII)) and from 36 to 60 States (resolution 57/20). For the current composition of the Commission, see decision 73/412.

The Assembly had on its agenda the item entitled “Report of the United Nations Commission on International Trade Law” annually from the twenty-third to the forty-first sessions and has had the item entitled “Report of the United Nations Commission on International Trade Law on the work of its … session” annually since its forty-second session (resolutions 2421 (XXIII), 2502 (XXIV), 2635 (XXV), 2766 (XXVI), 2928 (XXVII), 3104 (XXVIII), 3108 (XXVIII), 3316 (XXIX), 3494 (XXX), 31/98 to 31/100, 32/145, 33/92, 33/93, 34/142, 34/143, 35/51, 35/52, 36/32, 37/106, 37/107, 38/134, 38/135, 39/82, 40/71, 40/72, 41/77, 42/152, 42/153, 43/165 (United Nations Convention on International Bills of Exchange and International Promissory Notes), 43/166, 44/33, 45/42, 46/56 A and B, 47/34, 48/32 to 48/34, 49/54, 49/55, 50/47, 50/48 (United Nations Convention on Independent Guarantees and Stand-by Letters of Credit), 51/161, 51/162 (Model Law on Electronic Commerce adopted by the United Nations Commission on International Trade Law), 52/157, 52/158 (Model Law on Cross-Border Insolvency of the United Nations Commission on International Trade Law), 53/103, 54/103, 55/151, 56/79, 56/80, 56/81 (United Nations Convention on the Assignment of Receivables in International Trade), 57/17, 57/18 (Model Law on International Commercial Conciliation of the United Nations Commission on International Trade Law), 57/19, 57/20, 58/75, 58/76, 59/39, 59/40, 60/20, 60/21 (United Nations Convention on the Use of Electronic Communications in International Contracts), 61/32, 61/33, 62/64, 62/65, 63/120, 63/121, 63/122 (United Nations Convention on Contracts for the International Carriage of Goods Wholly or Partly by Sea), 64/111, 64/112, 65/21 to 65/24, 66/94 to 66/96, 67/89, 67/90, 68/106 to 68/109, 69/115, 69/116 (United Nations Convention on Transparency in Treaty-based Investor-State Arbitration), 70/115, 71/135 to 71/138, 72/113, 72/114 and 73/197 to 73/200).

At its seventy-third session, the Assembly allocated the item to the Sixth Committee, where statements in the debate were made by the Chair of the United Nations Commission on International Trade Law and by 28 delegations (see A/C.6/73/SR.15, 32 and 34). The Assembly commended the Commission for the finalization of the draft convention on international settlement agreements resulting from mediation, as well as for the finalization and adoption of the Model Law on International Commercial Mediation and International Settlement Agreements Resulting from Mediation, the Legislative Guide on Key Principles of a Business Registry and the Model Law on Recognition and Enforcement of Insolvency-Related Judgments and its Guide to Enactment (resolution 73/197).

Consideration at the seventy-fourth session

The Sixth Committee considered the item at its 20th, 21st, 33rd and 34th meetings, on 21 and 22 October and 6 and 11 November 2019 (see A/C.6/74/SR.20, 21, 33 and 34). For its consideration of the item, the Committee had before it the report of the United Nations Commission on International Trade Law on the work of its fifty-second session (A/74/17).

At the 20th meeting, on 21 October, the Chair of the United Nations Commission on International Trade Law at its fifty-second session introduced the report of the Commission on the work of its fifty-second session (A/74/17).

Statements were made by the representatives of the European Union (also on behalf of its Member States (the candidate countries Turkey, the Republic of North Macedonia, Montenegro, Serbia and Albania, the country of the Stabilization and Association Process and potential candidate Bosnia and Herzegovina, as well as Ukraine, the Republic of Moldova and Georgia aligned themselves with the statement)), Finland (also on behalf of Denmark, Iceland, Norway and Sweden (Nordic Countries)), Sierra Leone, Singapore, the Philippines, Argentina, United Kingdom of Great Britain and Northern Ireland, Republic of Korea, Italy, United States of America, Honduras, Thailand, Austria, India, El Salvador, Japan, Kuwait, Malaysia, Venezuela (Bolivarian Republic of), Saudi Arabia, Ukraine, Zambia, Brunei Darussalam, Belgium, Islamic Republic of Iran, Peru, Colombia, Belarus, Viet Nam, Indonesia and Russian Federation.

Delegations generally expressed support for the work of the United Nations Commission on International Trade Law and commended it for the progress made during its fifty-second session. In particular, delegations welcomed the finalization and adoption of seven texts by the Commission, namely, the Model Legislative Provisions and Legislative Guide on Public-Private Partnerships; the Model Law on Enterprise Group Insolvency with its Guide to Enactment, as well as an additional section to part four of the Legislative Guide on Insolvency Law addressing the obligations of directors of enterprise group companies in the period approaching insolvency; the Practice Guide to the Model Law on Secured Transactions; and the Notes on the main issues of cloud computing contracts prepared by the Secretariat. It was observed that these texts adopted by the Commission would significantly contribute to the harmonization and modernization of international trade law, strengthen an international order based on the rule of law, and, moreover, advance the Sustainable Development Goals of the United Nations.

A number of delegations also expressed appreciation for the signing ceremony for the Singapore Convention on Mediation and encouraged other States to consider becoming a party to the Convention. Several delegations further stressed the importance of technical assistance and capacity-building efforts as well as intersessional meetings organized by the Secretariat of the Commission. In addition, recent efforts to improve the working methods of the Commission and enhance the efficiency of its work were welcomed. Several delegations indicated their intention to engage in consultations regarding the proposal to enlarge the membership of the Commission.

In relation to future work, several delegations highlighted their interest in various aspects of the work of the working groups. In relation to Working Group I, appreciation was expressed for the progress made in respect of reducing the legal obstacles faced by micro, small and medium-sized enterprises. In respect of Working Group II, support was voiced for measures aimed at enhancing the efficiency of arbitration and for creating a framework for expedited arbitration. In respect of the move by Working Group III to Phase 3 of its ongoing broad mandate concerning the possible reform of investor-State dispute settlement, delegations underlined the importance of continuation of its work as stipulated in its mandate in a fully inclusive and transparent manner. A number of delegations proposed elements of reforms to the investor-State dispute settlement system considered necessary for the system to be fair, transparent and legitimate. The view was expressed that, where dispute resolution involved public matters, a multilateral approach and a standing body were best suited to address all issues of concern identified. It was also suggested that the approach of allowing multiple reform options to be developed at the same time was appropriate. Moreover, some delegations emphasized the need for reforms to strike a balance between the rights and obligations of States on the one hand, and of investors on the other. Regarding Working Group IV, the development of security measures designed to facilitate digital trade was encouraged. In relation to Working Group V, the decision to conduct colloquia on asset tracing in the area of insolvency and on applicable law in cross-border insolvencies was welcomed. Finally, support was expressed for the continued efforts of Working Group VI to explore the development of an international instrument relating to the judicial sale of ships.

Action taken by the Sixth Committee

At the 33rd meeting, on 6 November, the representative of Austria, on behalf of a number of sponsors (see A/74/423), introduced a draft resolution entitled “Report of the United Nations Commission on International Trade Law on the work of its fifty-second session” (A/C.6/74/L.7).

At the same meeting, the representative of Austria, on behalf of the Bureau, introduced two further draft resolutions, entitled “Model Legislative Provisions on Public-Private Partnerships of the United Nations Commission on International Trade Law” (A/C.6/74/L.8), and “Model Law on Enterprise Group Insolvency of the United Nations Commission on International Trade Law” (A/C.6/74/L.9).

At its 34th meeting, on 11 November, the Committee adopted all three draft resolutions (A/C.6/74/L.7, A/C.6/74/L.8 and A/C.6/74/L.9) without a vote. The representative of the Russian Federation made a statement in explanation of its position after the adoption of draft resolution A/C.6/74/L.7.

Under the terms of the first draft resolution (A/C.6/74/L.7), the General Assembly would, inter alia, commend the Commission for the finalization and adoption of a number of texts and take note with interest of the progress made by the Commission in its work in several areas and of the decisions taken by the Commission as regards its future work.

The second draft resolution (A/C.6/74/L.8) relates specifically to the Model Legislative Provisions on Public-Private Partnerships of the United Nations Commission on International Trade Law. Under its terms, the General Assembly would, inter alia, recommend that all States give due consideration to the Model Legislative Provisions and the Legislative Guide when revising or adopting legislation relevant to public-private partnerships.

With the third draft resolution (A/C.6/74/L.9), relating to the Model Law on Enterprise Group Insolvency of the United Nations Commission on International Trade Law, the General Assembly would, inter alia, recommend that, when revising or adopting legislation relevant to insolvency, all States give favorable consideration to the Model Law and also make use of parts three and four of the Legislative Guide on Insolvency Law of the United Nations Commission on International Trade Law.

Subsequent action taken by the General Assembly

This agenda item will be considered at the seventy-fifth session (2020).

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