Council approves EU signature of convention on transparency for dispute settlement

The Council of the EU has adopted today the decision on the signature of the United Nations Convention on transparency in Investor-State Dispute Settlement (ISDS), also known as the ‘Mauritius Convention’. The Convention facilitates the application of the United Nations Commission of International Trade Law (UNCITRAL) Transparency Rules to investment treaties concluded prior to 1 April 2014. These rules require all documents, including tribunal decisions and party submissions, to be made public; that hearings be open to the public; and that interested parties, such as civil society organisations, be allowed to make submissions to the tribunal.  

For treaties concluded on or after 1 April 2014, the transparency rules automatically apply to disputes initiated under the UNCITRAL Arbitration Rules, unless the parties agree otherwise. All EU agreements concluded after 2014 already benefit from in-built and enhanced transparency requirements. 

Increasing transparency of ISDS is a shared objective both internationally and within the EU. Once the EU signs and concludes the Convention, Member States can proceed with national ratification. 

Approximately 1,200 agreements involving EU Member States fall under the scope of the Convention. The Energy Charter Treaty (‘ECT’) is the only treaty covered at EU level.  

Ratifying the Convention is a first step in the broader reform of investment dispute settlement led by the EU and its Member States, within the framework of the United Nations Commission for International Trade Law. 

Next steps 

The EU will now formally sign the Convention. The ratification of the Convention by the EU will then follow, after the approval of the European Parliament.  

For more information 

United Nations Convention on Transparency in Treaty-based Investor-State Arbitration 

Dispute Settlement 

Reform of the ISDS mechanism