In the year 2018, the Singapore Convention on Mediation was adopted. It’s a UN treaty and is the first UN treaty named after the country of Singapore. United Nations Convention on International Settlement Agreements Resulting from Mediation is also what the Singapore convention referred to. In the month of September 2021, 55 countries signed this convention which also India as a member of the Singapore Convention.
Highlights
Singapore has developed a treaty in collaboration with UN member states and the United Nations Commission on International Trade and Exchange. This treaty aims to promote international trade through dispute resolution and international mediation. This allows the parties to implement a streamlined dispute resolution process that is bound by international law. This helps businesses enforce mediated international dispute resolution agreements. This is done through direct legal action in court that has ratified the agreement, rather than drafting a contract. The Singapore convention helps save legal fees and time.
Significance of the Singapore Convention on Mediation
The Convention was designed to be an essential tool in promoting international trade and facilitating mediation as an alternative and effective way to resolve trade disputes. This makes the settlement reached by the parties binding and enforceable after a simplified and streamlined procedure. Companies wishing to enforce a cross-border arbitration agreement do not have to enforce the settlement agreement as a contract based on national procedures, but do so by going directly to the courts of the country that signed and approved the treaty. A simplified and harmonious enforcement framework saves significant legal costs as well as time during uncertain times caused by pandemics such as Covid19. Companies in India as well as those located around the world will become more confident in resolving cross-border disputes through mediation, as they will provide a more effective means of implementing the outcome of mediation.
Importance of the convention from India?s viewpoint
This strengthens India’s awareness of ease of business by enabling rapid interim resolution of corporate disputes. It also signals foreign investors about India’s commitment to building investor confidence and adhering to international alternative dispute resolution (ADR) practices. The competition also builds investor confidence. It also sends a positive signal to the various foreign investors about the country’s commitment to adhere to the various international dispute resolution practices.