SINGAPORE – As delegates from 70 countries gathered in Singapore on Wednesday (Aug 7) for the signing ceremony of the Singapore Convention on Mediation, Singapore Prime Minister Lee Hsien Loong has described the international treaty as a powerful statement in support of multilateralism.

The UN Convention on International Settlement Agreements Resulting from Mediation – adopted by the United Nations (UN) General Assembly and named after Singapore in December last year – will apply only to commercial settlement agreements. Countries that sign it will have to enforce the mediation agreements in court.

It is the culmination of three years of work by more than 100 delegations, including country representatives and technical experts from observer, intergovernmental and non-governmental organisations.

Addressing ministers and officials representing 70 countries at the signing ceremony, PM Lee said: “The Singapore Convention on Mediation demonstrates that countries are capable of achieving consensus, with effort, creativity, and leadership.”

“Today, a group of States have come together to recommit ourselves to multilateralism and to declare that we remain open for business, we are prepared to make binding commitments, and we are committed to preserving our relationships,” he added at the event held at Shangri-La Hotel.

PM Lee pointed out that lengthy commercial disputes can severely disrupt business operations, damage reputations, hurt share prices and make it harder for companies to raise capital. The mediation treaty will help prevent commercial disputes from escalating unnecessarily and help advance international trade, commerce and investment

Forty-six countries will sign the Singapore Convention that will make it easier to enforce mediation settlements across borders.

For the treaty to come into force, at least three countries have to sign and ratify it.

Mediation involves a neutral party working with the different sides to come to an agreement, and is a less adversarial alternative to litigation and arbitration.

However, it has been limited, as mediated agreements are only contractually binding.

The Singapore Convention, which makes the agreements enforceable in the courts of signatory countries, will give mediation more teeth.

Home Affairs and Law Minister K. Shanmugam, speaking about the convention previously, said that this would give businesses more assurance in the use of mediation for dispute resolution, and facilitate international trade.

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