UK to sign the Singapore Convention on Mediation

What is the Singapore Convention?

1. It is a private international law agreement which provides a framework for the recognition and enforcement of international commercial settlement agreements reached by way of mediation.
2. It enables parties, which have mediated their dispute, to enforce the cross-border mediated agreement in any country that is party to the Singapore Convention without the need to commence a legal action for breach of contract.
3. It is non-reciprocal in nature and has wide application, meaning that the mediated settlement agreements that UK courts may be asked to enforce under the Singapore Convention rules do not need to have been concluded in the jurisdiction of another State party.
4. The UK will not take advantage of the two permissible reservations under Article 8 of the Singapore Convention.  This means that the Singapore Convention will apply to governmental or state parties and automatically apply to any cross-border mediated settlement agreement.
5. 55 countries have signed the Singapore Convention, and it has been ratified by 10 countries: Fiji, Qatar, Saudi Arabia, Belarus, Ecuador, Honduras, Turkey, Georgia, Kazakhstan and Singapore.

In general, mediation provides a cost-effective method of resolving disputes outside of court and it is an integral part of the UK justice system.  Commercial mediation aims to preserve business relationships.  According to the statement released by the UK Government, it is estimated that it can “save businesses around £5.9 billion per year in management time, lost productivity, and legal fees.  In February 2023, the value of UK mediated cases each year was estimated at approximately £20bn.”

If costs savings are not enough, signing the Singapore Convention is also likely to:

1. Reaffirm the UK’s long-lasting leadership in international law-making;
2. Promote the UK legal sector;
3. Increase the credibility of UK-based mediators; and
4. Increase the UK’s attractiveness as a respected jurisdiction for international dispute resolution.

In the words of Lord Bellamy KC, “this decision will be a clear signal to our international partners that the UK is committed to maintaining and strengthening its position as a centre for dispute resolution and to promote the UK’s flourishing legal and mediation sectors.”

The UK government confirmed that it will sign the Singapore Convention as soon as possible.  Ratification will occur once the necessary implementing legislation and rules are in place.

Our Disputes team is highly experienced, advising on cross-border commercial disputes for companies and individuals, including advising on alternative dispute resolution such as mediation. Please get in touch with Russell J Strong.