On this day in 2016, Kosova was admitted into the Permanent Court of Arbitration (PCA), an intergovernmental organization dedicated to serving the international community in the field of dispute resolution. Headquartered in The Hague, membership to the Permanent Court of Arbitration is open to all States by ratification of the 1899 or the 1907 Convention for the Pacific Settlement of International Disputes. On November 6th, 2015, Kosova sent a letter to the Netherlands, notifying its intention to join the 1907 Convention.

During the process, many objections were raised against the admission of Kosova as they are not a UN Member State. However, by a vote of 41 in favor, and in accordance with its Article 95, the 1907 Convention entered into force for Kosova. As a result, Kosova became a Member State of the PCA, bringing the total number of PCA Member States to 121. With this membership, Kosova has additional options to access and recourse to an international justice mechanism that provides peaceful dispute resolutions. 

Kosova’s admission into the Permanent Court of Arbitration is significant as it legitimizes its statehood and its recognition by the international community. In this direction, Kosova has taken initiatives to establish an effective local alternative dispute resolution (ADR) system in order to create a framework for the enforcement of contractual rights to promote investment in the country. A specific action taken by the Government of Kosova is the establishment of a permanent arbitral institution in alliance with the Kosova Chamber of Commerce.

Further, the government has created training programs for judges, practicing lawyers, and law students in order to provide a wide range of specialist expertise within the country. Kosova has also established an investment protection and arbitration system which recognizes the importance of foreign direct investment to build the economy. As a relatively new state, Kosova provides unusually high standards of investment protection on the basis of domestic legislation to attract businesses and investors.