The Singapore Agreement applies to international transaction agreements resulting from mediation and concluded by the parties to resolve a trade dispute. It provides an effective and harmonized framework for the implementation of international settlement agreements arising from mediation and to enable the parties to avail themselves of such agreements. Resolution 73/198, “United Nations Convention on International Comparison Agreements Resulting from Mediation,” adopted by the UN General Assembly at its 73rd session on 20 December 2018. READ WIEN, 10 September (UN Information Service) – By tabling the ratification instrument at UN headquarters in New York, Ecuador becomes the sixth state party to the UN Convention on International Comparison Agreements, which stems from mediation, also known as the Singapore Convention on Mediation. The ratification by Ecuador took place on 9 September 2020 and the convention will enter into force for Ecuador on 9 March 2021. Ecuador`s ratification of the Singapore Agreement comes just two days before it enters into force on 12 September 2020. A virtual celebration of the convention`s entry into force will take place on September 12, 2020 at the www.singaporeconvention.org/. 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. In response to this need, the Singapore Agreement was drafted and adopted by the United Nations. Article 5 of the Convention defines the reasons why a court may, at the request of the party to the dispute against it, refuse the granting of the right.
These reasons can be divided into three main categories: the parties to the dispute, the transaction treaty and the mediation procedure. Article 5 contains two other grounds why the Tribunal may automatically refuse to grant discharge. These grounds relate to public policy and the fact that the subject matter of the dispute cannot be resolved through mediation. In order to provide for the most favourable framework for transaction agreements, Article 7 provides for the application of the law or contract more favourable. Mediation is known to improve the effectiveness of dispute resolution and flexibility.