In 2009, the ICC Court created a Task Force on arbitration involving states or state entities tasked with reviewing the ICC rules and procedures and their use in disputes involving a state party, in particular investment treaty arbitration. The Task Force, composed of over 150 members from 36 different countries, will continue its review throughout 2010. We will continue to report on developments.

The UNCITRAL Working Group II (Arbitration) is in the process of considering proposed amendments to the UNCITRAL arbitration rules (see Legal update, Revisions to UNCITRAL arbitration rules). The Working Group was also previously considering whether to amend the arbitration rules in order to introduce greater transparency in investment treaty arbitrations. However, those discussions were put on hold in order to allow the Working Group to finish its current revision of the generic arbitration rules, which is likely to be completed in 2010. When that revision is complete, it is expected that the review on investor state issues will begin. We will continue to report on developments.

In 2009, the US Administration embarked on a review of the US model bilateral investment treaty (BIT) (see Legal update, United States Reviews Model BIT). The US Government is likely to complete its review in the first quarter of 2010. We will continue to report on developments.

On 1 December 2009, the Treaty of Lisbon came into force (see Legal updates, Treaty of Lisbon in force from 1 December 2009). The Lisbon Treaty has far-reaching effects on the competence of the EU. Amongst other things, it extends the EU’s powers in relation to foreign direct investment (FDI), bringing FDI within the exclusive competence of the EU, and empowering it to enter into treaties. The precise effects of the Lisbon Treaty on existing and future investment treaties remains unclear and has generated a good deal of debate. Arguably, the EU could strip Member States of their authority to enter in to investment treaties, and instead enter into them on their behalf. It is hoped that the EU will clarify the position this year. We will continue to report on developments.