IDCC - The Role of the U.N. Commission on International Trade Law (Lesson)

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The Role of the U.N. Commission on International Trade Law

Introduction

International business and trade has expanded drastically since the 1960s. As this expansion continued, many national governments saw the need for a set of global standards, rules, and regulations to govern international trade. Through the United Nations General Assembly the United Nations Commission on International Trade Law (UNCITRAL) was established. The focus of UNCITRAL is “to promote the progressive harmonization and unification of international trade law.” In this microlesson we will look at the makeup and overall elements of UNICTRAL.

The United Nations Commission on International Trade Law (UNCITRAL)

The United Nations has been a prominent component of the expansion of the global economy as we know it today. The United Nations (UN) is an international organization. The purposes of the UN are to: maintain international peace and security, protect human rights, deliver humanitarian aid, promote sustainable development, and to uphold international law.

The United Nations Commission on International Trade Law (UNCITRAL) is the core legal body of the UN governing international trade law. Trade is very important to promote faster growth, higher standards of living, and new opportunities through commerce, specifically international commerce. UNCITRAL’s member states represents different legal traditions and levels of economic development. The membership is structured so that it represents the worlds’ various geographic regions and its principal economic and legal systems. The Commission’s member states are elected by the United Nations General Assembly.

The purpose of UNCITRAL is to promote modern, fair, and harmonized rules regarding trade and commercial transactions. The Commission does this through:

  • “Conventions, model laws, and rules which are acceptable worldwide
  • Legal and legislative guides and recommendations of practical value to all
  • Updated information on case law and enactments of uniform commercial law
  • Technical assistance in law reform projects
  • Regional and national seminars on uniform commercial law”

Final Thoughts

As the world economy grows, there must be mechanisms in place to ensure fairness among commercial transactions and international trade. Peaceful and fair trade practices do not happen by chance. It takes great effort by many to ensure that the flow of trade is progressive, modernized, and harmonized. UNICTRAL was established for that purpose. Representing the world’s various geographical regions and its primary economic legal systems, UNICTRAL serves as a catalyst in forming unity among regional, national, and international regulations governing international trade.

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