Council gives green light for EU conclusion of UN Mauritius Convention on transparency for ISDS

Today, the Council of the EU has adopted the decision on the conclusion of the United Nations Convention on transparency in treaty-based investor-State arbitration, also known as the ‘Mauritius Convention’. 

The Convention applies the United Nations Commission of International Trade Law (UNCITRAL) Transparency Rules to investment treaties concluded prior to 1 April 2014. These rules provide for all documents to be made public (both decisions of the tribunal and submissions of the parties), for hearings to be open to the public, and for interested parties (civil society) to make submissions to the tribunal. As for treaties concluded on or after 1 April 2014, the transparency rules apply automatically to disputes initiated under the UNCITRAL Arbitration Rules, unless the parties otherwise agree. All EU agreements concluded after 2014 already benefit from in-built and enhanced transparency requirements.

Increasing transparency of investor-State dispute settlement is a shared objective at international level and within the EU. Member States are waiting for the EU to become party to the Convention in order to proceed with ratification.

For EU Member States, there are around 1,200 agreements falling under the scope of the Convention. For the EU, the only such treaty covered by the Convention is the Energy Charter Treaty (‘ECT’). The Convention will also apply to cases brought under the 'sunset' clause provisions of the Energy Charter Treaty. 

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

Next steps

The completion of EU internal processes means that the EU can now ratify the Mauritius Convention and that it will be applicable in cases brought against the EU where the investor comes from another state that has ratified the Convention. 

Background

On 25 June 2024, the Council adopted the decision on the signature of the Convention, which the EU duly signed on 2 July. The European Parliament voted in favour of concluding the Convention on 18 December 2024.

For more information

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

Dispute Settlement

Reform of the ISDS mechanism