As the International Mediation Institute and UNCIT note, mediation, as a means of resolving international disputes, is on the rise as opposed to litigation or arbitration proceedings. The perceived benefits of mediation are that it is faster, less costly and more likely to maintain commercial relationships than international arbitrations or litigation. The international implementation of these negotiated comparisons is now facilitated by the Singapore Convention on Mediation, which is particularly important in times of uncertainty in international affairs, such as the COVID 19 pandemic. Several other important factors have influenced the growing use of mediation in international dispute settlement, including china`s Belt and Road initiative, a multi-billion euro infrastructure development strategy in Asia and Europe, and increased trade and investment related to the Trans-Pacific Partnership. The convention is also known as the Singapore Convention on Mediation. The signing of the agreement will strengthen investor confidence and send a positive signal to foreign investors about India`s commitment to international practice of out-of-court dispute resolution (ADR). In order to further strengthen the confidence of foreign investors in the Indian market, Panchu said that the law supporting the agreement in India should cover all government agreements with investors in India and in a third country that has chosen the middle parties. The United States first launched a proposal in 2014 to develop a multilateral agreement for the codification of international trade agreements through mediation. Prior to the entry into force of the Singapore Convention on Mediation, the only multilateral legal instruments for the settlement of international trade disputes were the various international litigation instruments under the Hague Convention on Private International Law and the New York Convention, which provided for arbitration proceedings in such disputes. The Convention is an instrument designed to facilitate international trade and promote mediation as an alternative and effective means of resolving trade disputes.
As a binding international instrument, it aims to ensure the security and stability of the international mediation framework and thus contribute to the Sustainable Development Goals (SDGs), in particular SDG 16. It provides a unique framework for the implementation of international settlement agreements arising from mediation. It also provides an effective framework for parties to avail themselves of such agreements, as provided for by the New York Convention (or the Convention on the Recognition and Enforcement of Foreign Arbitration Awards (New York, 1958) for arbitration awards.