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United Nations Convention On International Settlement Agreement

In Uncategorized on April 14, 2021 at 12:36 am

The Convention is an instrument designed to facilitate international trade and promote mediation as an alternative and effective means of resolving trade disputes. As a binding international instrument, it aims to ensure the security and stability of the international mediation framework and thus contribute to the Sustainable Development Goals (SDGs), in particular SDG 16. The agreement does not apply to transaction agreements which: this agreement promotes mediation, which may, in certain circumstances, be a more effective method of dispute resolution than arbitration or court proceedings. However, in order to enter the scope of this Convention, a mediator must assist the parties in reaching its transaction agreement; Therefore, the parties cannot only reach an agreement themselves. b) This agreement does not apply to transaction agreements in which it participates or to which public authorities or persons acting on behalf of a government authority are parties, to the extent specified in the declaration. In addition, Article 5 of the Singapore Convention includes defences similar to those of Article V of the New York Convention, including the defence of the inability to enter into an arbitration agreement and (ii) where the subject matter of the dispute is not in a position to settle by arbitration (mediation) according to the law of the country where recognition or enforcement is sought. In addition, the Singapore Agreement also contains a provision that reflects the defence of application by the New York Convention: (iii) the defence of “public order”. (Oct 13, 2020) Last month, the UN Convention on International Comparison Agreements, which stems from mediation (the Singapore Convention on Mediation), came into force. The Singapore Convention on Mediation was adopted in 2018 by the UN Commission on International Trade Law (UNCIT), but came into force in September 2020, six months after the Convention was ratified by six countries. At the August 2019 signing ceremony, representatives from 46 countries signed the convention and the Prime Minister of Singapore declared that the convention was “the missing piece in the framework of the international dispute settlement.” 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. However, until the implementation of the Singapore Agreement, the lack of an effective and harmonised framework for cross-border implementation of transaction agreements resulting from mediation was an often cited challenge for the use of mediation.