Singapore Convention on Mediation
Part of: GS Prelims and GS-II – International Relations
- Recently, the United Nations Convention on International Settlement Agreements Resulting from Mediation has come into force.
- It is also known as the Singapore Convention on Mediation.
- It is the first UN treaty to be named after Singapore.
- The convention will provide a more effective way of enforcing mediated settlements of corporate disputes involving businesses in India and other signatories.
- India approved the signing of the Convention in July 2019.
- The Convention has 53 signatories which include China and the USA as well.
- It will promote mediation as an alternative and effective method of resolving trade disputes.
- The settlement reached by parties shall be binding and enforceable.
- Mediated settlement agreement across borders can be done by applying directly to the courts of countries that have signed and ratified the treaty.
- It will save time and legal costs.
- Businesses in India and around the world will now have greater certainty in resolving cross-border disputes through mediation.
- It will boost India’s ‘ease of doing business’ credentials by enabling swift mediated settlements of corporate disputes.
- It will also provide a positive signal to foreign investors about India’s commitment to adhere to international practice on Alternative Dispute Resolution (ADR).