Today mediation is an alternative and effective method for resolving trade disputes and if done correctly, it will definitely assist in dispute prevention and from any argument to expand and grow. In the long run, adequate mediation will lead to saving money as it avoids additional legal costs.
United Nations Convention on International Settlement Agreements Resulting from Mediation (Singapore Convention) was opened for signature by all States as of the 7th of August, 2019. The variety of nations (46) shows that we can make a coalition for the settlement of world peace. However, this convention is not signed by the U.K and other E.U member states, but Iran, China, and the United States are a part of this Convention.
A settlement agreement may be enforced directly by the courts of a State.
It is worth mentioning that the scope of application of the Convention is restricted to only international or non-domestic commercial disputes. Article 2.3 of the Convention provides a broad definition of mediation as an attempt by parties “to reach amicable settlement of their dispute with the assistance of a third person or persons (‘the mediator’) lacking the authority to impose a solution upon the parties.”
In regards to this matter, UNCITRAL states,
“The Convention is consistent with the UNCITRAL Model Law on International Commercial Mediation and International Settlement Agreements resulting from Mediation (2018). This approach is intended to provide States with the flexibility to adopt either the Convention, the Model Law as a standalone text or both the Convention and the Model Law as complementary instruments of a comprehensive legal framework on mediation.”
It will be interesting to see how much impact the Singapore Convention can have in the future of dispute resolution regarding the commercial aspects. If interested, take a look and read the full Convention text.