12 Apr Singapore Agreement Mediation
The success of the convention (once it enters into force) will depend in large part on its adoption and ratification by the states. Nevertheless, the agreement will encourage parties involved in cross-border projects and transactions to view mediation as an effective process in terms of time and cost in their dispute resolution instruments. The Working Group has indicated its intention to minimize available defences so as not to over-complicate the agreement with many grounds for review that would impede the effectiveness of the mediation process.5 The resolution of a dispute through mediation is one of the most timely and cost-effective approaches a party can take to resolve the issues at issue. Mediation – a confidential amicable negotiation process, supported by an independent third-party mediator – can be a very useful tool in the right circumstances. The Singapore Agreement applies only to the mediation of international trade disputes, i.e. if at least two parties to the transaction agreement have their place of business in different states; or the state in which the parties operate, differs from the state in which a substantial portion of the obligations arising from the transaction agreement is fulfilled or from the state with which the purpose of the transaction agreement is most closely linked. Any party considering enforcing an international mediation agreement on the Singapore agreement would be advised to define corrective measures in the event of a breach of the transaction agreement in the agreement itself. In this regard, the parties must be aware of the accountability of certain remedies under the legislation of certain jurisdictions. Therefore, when appealing, the parties must consider the most likely enforcement jurisdiction or jurisdictions and consider the remedies available in each area. These measures, taken from the outset, will provide greater certainty than the recourse that a research party will actually be feasible if it is necessary to continue the execution.
If, at present, two parties enter into a transaction agreement as a result of mediation and one party fails to meet its obligations under the transaction agreement, the other party will have to enforce the settlement agreement through the dispute settlement clause (if any) in the transaction agreement.