By facilitating a negotiated solution between the parties, mediation can generally offer them a faster, cheaper and more commercial method of dispute resolution than litigation and arbitration proceedings. With the help of neutral and qualified experts, settlements focus the parties on what is really important to them and quickly repair their privacy differences while preserving the reputation of the companies and their long-term relationship. However, until the Singapore agreement, there was no harmonized enforcement mechanism for these negotiated comparisons. The only recourse for a party who was confronted by an opponent who refused to comply with the terms of such a negotiated solution was to bring an action for breach and then to attempt to enforce the subsequent judgment, possibly in several jurisdictions. This was an expensive and ineffective deterrent for the parties to even consider mediation to resolve their disputes, so they turned to arbitration or litigation from the outset. In addition, Article 3 deals with the main obligations of the parties to the agreement, both with respect to the application of the transaction agreements and the right of a litigant to avail themselves of a transaction agreement governed by the agreement. Any party to the convention can define the procedural mechanisms that can be followed if the convention does not impose requirements. Article 4 includes the formalities of recourse to a transaction agreement, i.e. the party to the dispute provides the relevant authority with the transaction contract it has signed and proves that the transaction agreement is the result of mediation.
The competent authority may require any documents necessary to verify that the requirements of the convention are being met. The UN Convention on International Mediation Agreements (Singapore Convention) will enter into force on 12 September 2020. The agreement culminates with three years of discussions on the implementation of the international resolution between 85 Member States and supports the mediation process and its role in the international settlement of trade disputes.