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The year 2021 was marked, like its two predecessors, by major commercial disruptions due to the COVID-19 pandemic. However, alternative dispute resolution, and mainly mediation, showed a remarkable adaptation to the health situation. This has therefore allowed a certain continuity of trade relations at the international level.
The rise of commercial mediation: significant increase in mediated disputes
Commercial mediation is growing in popularity, and this is reflected in the number of mediated cases increasing internationally.
In the UK, statistics from the Centre for Effective Dispute Resolution (CEDR) as of May 2021 show a 38% increase in the number of cases mediated since 2018[1].
In Singapore, the number of cases mediated and administrated by the Singapore International Mediation Centre (SIMC) exceeded the total number of cases handled in 2020 in just the first seven months of 2021.
Regarding the value of disputes mediated and filed with the two institutions respectively mentioned above, we can note the following: For 180 cases administered by the SIMC between 2014 and 2021, the total value was SG$6 billion. The CEDR estimates that for approximately 16,000 cases mediated between 2020 and 2021, the total value was £17 billion.
Finally, the cross-border aspect of disputes is more noticeable in recent mediations. For example, the disputes administered by the SIMC involve parties from 40 different jurisdictions.
New horizons for the Singapore Convention
The Singapore Convention known as the United Nations Convention on International Settlement Agreements Resulting from Mediation is celebrating its second year of entry into force. This international instrument provides harmonized mechanisms for the enforcement and recognition of mediated settlement agreements. The Convention provides the legal effectiveness of mediation agreements – an effectiveness and security that is so much sought after by international trade operators.
Considered as the equivalent of the New York Convention in terms of mediation, its success will depend mainly on its integration into the national legal systems. This can only be achieved through its signature and ratification by the largest possible number of countries.
Indeed, its provisions are only applicable to the Member States, parties to the Convention. The harmonization of the enforcement rules it stipulates requires its wide dissemination among States.
As of 3 January 2022, the Convention has 55 signatories, of which nine are parties to the Convention[1]. The year 2021 was marked by the accession of Brazil and Australia to the Convention. Honduras, Turkey and Georgia ratified the Convention also during 2021.
Participation to date has been modest, but further efforts are needed to extend its scope to as many states as possible.
Technology: an increased necessity
If the use of technology during the mediation process could be seen as an innovation – or even an exception – this is no longer the case since the advent of the pandemic. The year 2021 was therefore the year of the consecration of technology as an indispensable tool. Adaptation to the health crisis is reflected in the successful development of “online mediation”.
Platforms for conducting virtual hearings have become the norm in the conduct of mediation sessions.
However, the use of technology was not limited to hearing platforms. Analytical tools for the appointment of a mediator and/or counsel, predictive analysis tools, automated negotiation tools[1], online sharing documents have all made their grand entrance into the process.
These uses have revolutionized the practice of mediation. A return to the past is no longer an option. However, compliance with current standards remains a necessity. Cybersecurity and personal data protection issues are therefore emerging and must be taken into consideration.
So let’s wait and see what changes the year 2022 will bring in this regard !
[1] https://www.singaporeconvention.org/jurisdictions/
[1] SMU SIDRA Survey Report 2020.pdf/
