Why Bangladesh should sign Mediation Convention

The United Nations Convention on International Settlement Agreements resulting from Mediation, also known as the "Singapore Convention on Mediation",which was adopted on 20 December 2018, applies to international settlement agreements resulting from mediation. The Convention is an instrumentto facilitate international trade and the promotion of mediation as an alternative and effective method of resolving trade disputes. It is also expected to bring certainty and stability to the international framework on mediation, thereby contributing to the Sustainable Development Goals (SDGs), mainly the SDG 16, i.e. peace, justice and strong institutions.Being a country with many economic and investment prospects, Bangladesh should sign this Convention to advance its mission to achieve SDG 16.

Signing the Convention will strategically encourage Foreign Direct Investment (FDI) in the country, as Foreign investors often will prefer more amicable methods of dispute resolution, such as mediation.Cancellations of RMG orders of Bangladesh by foreign buyers could have been resolved confidentially as well as could preserve commercial association, if Bangladesh would have been a signatory of the Convention on Mediation. The current pandemic made the necessity of signing the Convention more urgent.

The signing of the Convention would also come as a breathing space as it would enable the direct recognition and enforcement of the settlement agreement, thereby, saving the parties from the complications related to enforcement of the settlement agreements as arbitral awards or as judgements.

Furthermore, it would bring confidence for the foreign investors. The Convention places mediation in the same league as litigation and arbitration in the international dispute resolution arena. The Convention aims to support international trade and encourages the use of mediation when dealing with the resolution of cross-border commercial disputes. The Convention provides much more certainty when dealing with cross border mediation than has previously been the case. The nature of some disputes such as long-term investment and infrastructure projects involving cross border elements would benefit from the Convention which has a huge amount to offer in terms of time and cost efficiencies.

Therefore, Bangladesh should sign the Singapore Convention to help reducing the congestion of cases in courts and to attract more FDIs.In India, active measures are being taken by different organs of the government to promote mediation as a means of dispute resolution. Three organs of the State, i.e. executive, legislature, and judiciary should also walk shoulder to shoulder to make mediation a popular way forward.

THE WRITER IS AN ADVOCATE, SUPREME COURT OF BANGLADESH.