Singapore Convention on Mediation

Singapore Convention on Mediation

Part of: GS Prelims and GS-II – International Relations

In news

• 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.

Key takeaways

• 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.

Significance

• 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).