Why in News ?

Singapore Convention on Mediation came into force on Saturday and will provide a more effective way for enforcing mediated settlements of corporate disputes involving businesses in India and other countries that are signatories to the Convention.

Singapore Convention on Mediation

• Also known as the United Nations Convention on International Settlement Agreements Resulting from Mediation, this is also the first UN treaty to be named after Singapore.
• Thus marking a significant development in international commercial dispute resolution.
• The Convention has 53 signatories, including India, China and the U.S.
• Need for the Mediation?
  • There was the lack of an efficient and harmonised framework for cross-border enforcement of settlement agreements
• Businesses seeking enforcement of a mediated settlement agreement across borders can do so by applying directly to the courts of countries.
  • Instead of having to enforce the settlement agreement as a contract in accordance with each country’s domestic process.
• This helps the businesses to reduce the cost and time which is important for business.
• It ensures that a settlement reached by parties becomes binding and enforceable in accordance with a simplified and streamlined procedure.
  • Contributes to strengthening access to justice and the rule of law.
• Primary goals of the Convention are
  • To facilitate international trade.
  • To promote the use of mediation for the resolution of cross-border commercial disputes.
  • To enforce a settlement agreement in accordance with its rules of procedure and under the conditions laid down in the Convention.

How it help India ?

• • Would boost India’s ‘ease of doing business’ credentials by enabling swift mediated settlements of corporate disputes.
  • Businesses in India and around the world will now have greater certainty in resolving cross-border disputes through mediation.

Source : The Hindu

Topic 

Prelims : About Singapore Convention on Mediation

GS II : Important International institutions, agencies and fora- their structure, mandate

Current Affairs Compilation : 14 September 2020