The “Singapore Convention”: The way forward in international mediation?
Mediation is an established alternative dispute resolution mechanism, especially in the commercial sector. Compared with court or arbitration proceedings, mediation is often less formal, expensive and time-consuming. However, it currently suffers from a major disadvantage with regard to disputes with an international background: mediated settlements are not internationally binding.
In the future, however, settlements reached through mediation could be enforceable internationally just like arbitral awards, should the so-called Singapore Convention, which UNCITRAL has been preparing since 2014, come into force. In this alert we analyse the key aspects of the draft Convention and report on the current status of the project.