S'pore Convention on Mediation timely and critical to businesses, trade

OVER the weekend, an international agreement that aims to help businesses resolve cross-border disputes and facilitate international trade took effect with little fanfare.

But the Singapore Convention on Mediation - formally known as the United Nations (UN) Convention on International Settlement Agreements Resulting from Mediation - is a significant piece of news. It is a major step forward for mediation in the global arena, and critical in the development of a mature, rules-based global commercial system.

The convention - the first UN treaty to be named after Singapore - will provide businesses with a full suite of options to resolve their cross-border disputes, whether through litigation, arbitration or mediation. It comes into effect at a time when there is growing momentum around mediation as more businesses look to alternative means of resolving disputes, given that court processes have been hampered by lockdowns.