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World / Tue, 01 Sep 2026 INSIGHTS IAS

UPSC CURRENT AFFAIRS – 1 SEPTEMBER 2026

Prelims The Permanent Court of Arbitration (PCA)Context: The Permanent Court of Arbitration (PCA) ruled that the Indus Waters Treaty (IWT) remains in force and restricted certain works on the Ratle Hydroelectric Project. The Permanent Court of Arbitration (PCA)About The Permanent Court of Arbitration (PCA) :What It Is? The Permanent Court of Arbitration (PCA) is an intergovernmental organization dedicated to facilitating international arbitration, conciliation, and fact-finding for disputes arising between states, state entities, intergovernmental organizations, and private parties. is an intergovernmental organization dedicated to facilitating international arbitration, conciliation, and fact-finding for disputes arising between states, state entities, intergovernmental organizations, and private parties. Establishment: Founded in 1899 during the first Hague Peace Conference under the Convention for the Pacific Settlement of International Disputes (convened by Czar Nicholas II of Russia).

Prelims The Permanent Court of Arbitration (PCA)

Context: The Permanent Court of Arbitration (PCA) ruled that the Indus Waters Treaty (IWT) remains in force and restricted certain works on the Ratle Hydroelectric Project.

India rejected the ruling, calling the arbitration illegally constituted and its decision null and void.

The Permanent Court of Arbitration (PCA)

About The Permanent Court of Arbitration (PCA) :

What It Is?

The Permanent Court of Arbitration (PCA) is an intergovernmental organization dedicated to facilitating international arbitration, conciliation, and fact-finding for disputes arising between states, state entities, intergovernmental organizations, and private parties.

is an intergovernmental organization dedicated to facilitating international arbitration, conciliation, and fact-finding for disputes arising between states, state entities, intergovernmental organizations, and private parties. Despite its name, it is not a traditional standing court with permanent judges; rather, it is a permanent institutional framework that provides administrative support, procedural rules, and registries for ad-hoc arbitral tribunals.

Establishment: Founded in 1899 during the first Hague Peace Conference under the Convention for the Pacific Settlement of International Disputes (convened by Czar Nicholas II of Russia).

Revision: The convention was revised at the second Hague Peace Conference in 1907.

Headquarters: Peace Palace, The Hague, Netherlands.

India and Pakistan: Both have been Contracting Parties to the PCA since 1950, adhering to the 1899 and 1907 Hague Conventions.

Aim: To provide the international community with accessible, flexible, and peaceful legal mechanisms to settle inter-state and commercial disputes that diplomacy fails to resolve, avoiding recourse to armed conflict.

Key Functions of the PCA:

Administration of Ad-Hoc Tribunals: Serves as the official registry and administrative secretariat for arbitral tribunals constituted under multilateral conventions, bilateral investment treaties (BITs), and international river pacts.

Serves as the official registry and administrative secretariat for arbitral tribunals constituted under multilateral conventions, bilateral investment treaties (BITs), and international river pacts. Multi-Domain Dispute Resolution: Facilitates legal settlement across a wide array of disputes, including boundary demarcations, sovereign maritime boundaries, human rights, environmental governance, and commercial investor-state arbitrations.

Facilitates legal settlement across a wide array of disputes, including boundary demarcations, sovereign maritime boundaries, human rights, environmental governance, and commercial investor-state arbitrations. Appointing Authority Services: The Secretary-General of the PCA acts as an appointing authority to designate neutral arbitrators when disputing parties fail to agree on tribunal composition.

The Secretary-General of the PCA acts as an appointing authority to designate neutral arbitrators when disputing parties fail to agree on tribunal composition. Fact-Finding and Conciliation Commissions: Provides institutional rules and support for non-binding dispute resolution, such as international commissions of inquiry and conciliation panels.

The Indus Waters Treaty & Recent Ruling:

Treaty Background : The World Bank-brokered IWT (1960) allocates Ravi, Beas and Sutlej to India and Indus, Jhelum and Chenab primarily to Pakistan, while permitting limited Indian hydropower use on Western Rivers.

The World Bank-brokered IWT (1960) allocates Ravi, Beas and Sutlej to India and Indus, Jhelum and Chenab primarily to Pakistan, while permitting limited Indian hydropower use on Western Rivers. August 2026 Ruling: The PCA held that the IWT remains binding and cannot be unilaterally suspended or held in abeyance, rejecting India’s cited grounds, including cross-border terrorism.

The PCA held that the IWT remains binding and cannot be unilaterally suspended or held in abeyance, rejecting India’s cited grounds, including cross-border terrorism. Ratle Interim Measures: The PCA temporarily restricted specified construction on the 850 MW Ratle Hydroelectric Project on the Chenab pending Neutral Expert proceedings.

India’s Stand:

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