UNCITRAL i.e. The United Nations Commission on International Trade Law is the core legal body of the United Nations system in the field of International Trade Law. This was formed by the General Assembly of the United Nations in 1966.
The official function of UNCITRAL is the modernization and harmonization of rules on international business. This organization can be held responsible for helping facilitate International Trade and Investment.
Background
International Trade is a very important division of the United Nation. When world trade began to expand dramatically in the 1960s, national governments began to realize the need for a global set of standards and rules to harmonize national and regional regulations which until then governed international trade. In response to this the United Nations established the United Nations Commission on International Trade Law (UNCITRAL).
As the UNCITRAL relates to the international trade it revised its trade programs on the basis of new development in technology, changing business practices, international trends, developments, economic and financial crises, shipping, international trade etc. the UNCITRAL generally include all process of trade and agencies related to international commercial law like Internet, sales of goods, international transportation of sales/goods.
The membership of UNCITRAL is determined by the United Nations General Assembly. The members of UNCITRAL are elected every 3 years for 6 years terms.
The meeting of members alternatively takes place in New York and Vienna. The original membership comprised 29 member states of the UN, which was expanded to 36 in 1973 and then expanded again in 2002 to 60 states.
Explanation of UNCITRAL 1980 and 1985
UNCITRAL model law and rules:
Arbitration and conciliation as a means of dispute resolution is the most important requirement of commercial activities. As a result efforts were being made by the UN to work out a comprehensive uniform model arbitration law at the international level which should be uniformly adopted by the member countries with suitable modification keeping in view their domestic needs and national laws.
For this purpose, the UNCITRAL model law on international commercial arbitration was adopted by the UNCITRAL on 21st June 1985 at the end of the commission’s 18th annual session.
The model law was designed to assist states in reforming and modernizing their laws on arbitral procedures so as to take into account particular features and needs of international commercial arbitration. It covers all stages of the arbitral process from the arbitration agreement, composition and jurisdiction of the arbitral tribunal and the extent of the court intervention through the recognition and enforcement of the arbitral award.
The UNCITRAL also adopted in 1980 a set of conciliation rules. The General Assembly recommended the use of these rules by the member countries intended to settle their disputes amicably (friendly) without taking recourse to a strict legal system. An important feature of the UNCITRAL model and rules is that they have harmonized concepts on arbitration and conciliation of different legal systems of the world and thus contain provisions which are designed for universal application.
Also Read-
ADR: Meaning, History, Types, Nature And Concept
ADR System: Advantages And Disadvantages
This article is very helpful. Thank you guys for your effort.