Singapore Convention on Mediation treaty enters into force on Sept 12

THE Singapore Convention on Mediation, an international treaty on mediation, entered into force at noon on Saturday, setting up mediation as a stronger dispute resolution option for cross-border transactions.

The United Nations (UN) treaty is the first to be named after Singapore, and has been signed by 53 countries and ratified by six as of Sept 1. The countries that have both signed and ratified the Convention are Singapore, Fiji, Qatar, Saudi Arabia, Belarus and Ecuador.

Under the Convention, businesses can apply directly to the courts of countries that have signed and ratified the treaty to enforce mediated settlement agreements across borders. In the past, such agreements would have had to be enforced as contracts in accordance with each country's domestic process.

Singapore's Ministry of Law said in a statement announcing the development: "The harmonised and simplified enforcement framework under the Convention translates into savings in time and legal costs, which is especially important for businesses in times of uncertainty, such as during the current Covid-19 pandemic."

The Convention will enable businesses to have greater certainty and assurance that choosing mediation as the dispute-resolution method for their cross-border transactions will result in enforceable outcomes. In addition, the "conciliatory nature" of the method will help preserve commercial relationships in the resolution process.

The treaty is expected to strengthen Singapore's position as an international dispute-resolution centre, especially for international businesses that use the city-state as a base for international commercial transactions. Some institutions set up for dispute resolution in Singapore include the Singapore International Arbitration Centre, Singapore International Mediation Centre, and Singapore International Commercial Court.

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Minister for Home Affairs and Law K. Shanmugam said the Convention's entry into force will strengthen the international dispute-resolution enforcement framework. "This benefits business by providing greater certainty in resolving cross-border commercial disputes, ultimately facilitating international trade and commerce."

Said Anna Joubin-Bret, secretary of the United Nations Commission on International Trade Law: "With the entry into force of the Convention, we look forward to it bringing certainty and stability to the international framework on mediation, and contributing to the Sustainable Development Goals, including the goal of promoting peaceful and inclusive societies for sustainable development."