Singapore to host over 50 countries at signing of namesake treaty

Singapore

REPRESENTATIVES from more than 50 countries, including the US and China, will gather in Singapore on Aug 7 for the signing of an international treaty on mediation, adopted by the United Nations (UN) General Assembly and named after Singapore in December 2018.

About 25 of the attending countries have indicated that they will be signing the UN Convention on International Settlement Agreements Resulting from Mediation, also known as the Singapore Convention on Mediation, said Minister for Law K Shanmugam at a Monday briefing.

Drafted and negotiated by a working group chaired by a Singapore official, the convention sets out a framework for internationally accepted mediation rules. Crucially, it adds teeth to the negotiation process by allowing the courts to enforce cross-border commercial mediated settlement agreements more readily.

Mediation, which involves a neutral mediator working with two parties to come to an agreement, is valued as an alternative to litigation and arbitration since it preserves relationships and is faster and cheaper. However, it has been limited by the fact that mediated settlement agreements are only contractually binding and not directly enforceable in court.

By making the agreements enforceable, the Singapore Convention will give businesses greater certainty and assurance in the use of mediation for dispute resolution, and facilitate international trade and commerce.

The convention strengthens an already powerful negotiation tool, as well as bolstering a common process of going from arbitration to mediation and back to arbitration if mediation is unsuccessful, Mr Shanmugam said.

"(Mediation) plays well into the psyches of investors, because if you can successfully mediate, then both sides feel that they've gotten something out of it and go away with the potential to continue to do business," he said.

Mr Shanmugam added Singapore has been actively building itself up as an international legal centre for some time now, and the naming of the convention after the city-state recognises not only its role in negotiating the treaty, but also its standing as one such legal centre. Some of its advantages as a dispute resolution centre include the country's neutrality and reputation for an excellent legal system, judiciary and rule of law.

In addition, Singapore has a keen interest in dispute resolution, rooted in the importance of trade and commerce to its economy, he said.

"Our external trade is three times our internal economy. For us, dispute resolution, anything that supports the flow of trade and the growth of the economies in this region, is extremely important," said Mr Shanmugam.

"All of this will further position us in the dispute resolution sphere as a whole, to play a key role in the flow of commerce in this region."

The convention will come into force in signatory countries about six months after their respective governments sign and ratify it.

The signing ceremony will take place during a related conference on Aug 6-8. The conference is part of Singapore Convention Week, which will include other key events such as the official opening of INSOL's Asia hub, the inaugural Asia Pacific Arbitration Conference by the International Bar Association and the opening of Maxwell Chambers Suites, an extension of integrated dispute resolution complex Maxwell Chambers.

INSOL is a worldwide federation of 44 associations of accountants and lawyers who specialise in turnaround and insolvency. Its Asia hub is its first overseas office, and will be housed in Maxwell Chambers Suites, along with 10 other international institutions and 20 dispute firms.