Abstract

At its 58th session in July 2025, the United Nations Commission on International Trade Law (UNCITRAL) adopted the Toolkit on Prevention and Mitigation of International Investment Disputes (the Toolkit).  The newly adopted Toolkit addresses a topic of particular concern in the reform in the context of investor-State dispute settlement (ISDS). This reform was mandated by the Commission in 2017 and is being advanced by UNCITRAL Working Group III (ISDS reform).

In a nutshell, the Toolkit is a non-prescriptive document that is intended to assist States in identifying and implementing effective measures to prevent and mitigate investment disputes. It presents a range of approaches currently employed by States, while acknowledging that each State must develop its own approach based on its legal and institutional framework.

The Toolkit thus does not create legal obligations on the part of the State, nor does it require further implementation in national legislation frameworks. It also does not intend to relieve investors from the responsibility to conduct due diligence and remain informed about relevant legal and regulatory requirements.
Focusing on the pre-dispute phase, the Toolkit is a practical guidance document aimed at helping States address grievances before they escalate into formal legal disputes and, where appropriate, explore amicable solutions, including through mediation. In this process, information-sharing is key, for example, through public consultations and effective communication between all relevant stakeholders. As such, the Toolkit promotes a wide range of processes that can enhance transparency between States and investors and ultimately safeguard business relations.

Taking a holistic view towards those issues, this article describes how the Toolkit contributes to enhancing transparency in ISDS, building upon the foundation laid by the UNCITRAL Rules on Transparency in Treaty-based Investor-State Arbitration back in 2013 and feeding into the broader realm of ISDS reform elements developed by UNCITRAL Working Group III.

This paper will be part of the TDM Special Issue on "Dispute Prevention in ISDS: Comparative Approaches, Institutional Innovations, and Digital Tools". More information here www.transnational-dispute-management.com/news.asp?key=2086