Brazil signs the United Nations Convention on International Settlement Agreements Resulting from Mediationadmin2019
Brazil had signed the ‘Singapore Convention of Mediation’ on 4th June at the United Nations headquarters in New York. This Convention consists of the UNCITRAL Model Law and the key provisions lie in the first ten articles. Brazil is the fifty-fourth signing state of this multilateral treaty.
In the era of nascent International trade and investment, it was highly important to cultivate and maintain an explicit cross-border legal framework for the smooth operation of such businesses. Cross-border disputes would require a clear neutral process so that harmonization of the nation’s afterward could have been secured.
To pursuit, this modernization and harmonization between the nations and in the law of international trade, the United Nations Commission on International Trade Law (UNCITRAL) played a key role in the development of the legal framework. Among other treaties, the significant treaty which was named after Singapore is the ‘Convention on International Settlement Agreements resulting from Mediation’, also named as the ‘Singapore convention on Mediation’ opened for signing on 7th August 2019.
As with the convention, the final outcome or agreements are made enforceable, the business entities can rely on Mediation as a method of dispute resolution option for their cross-border transactions with assurance and certainty. The method of mediation also preserves the relationship between the disputed parties despite of the dispute because of its appealing nature.
As the convention gives the countries, who have ratified and signed the treaties, direct power to enforce the mediation settlement agreement, the businesses now do not have to go through their own domestic process separately to enforce it as a contract like before. SO the convention has made the process more simplified saving more time and legal costs and makes the process more certain. The number of first-day signatories was among the highest for any UN trade convention, reflecting international recognition and support of the Convention’s benefits.
Because of its prudent potential, the convention had already 53 signatories before Brazil also signed on 4th June 2021. Before that Ecuador was the most recent country to ratify the convention by joining other countries like Singapore, Saudi Arabia, Belarus, Qatar who have brought the convention to six. The number of first-day signatories was among the highest for any UN trade convention, reflecting international recognition and support of the Convention’s benefits.
Source: Singapore Convention, Unicitral