As of 17 August 2020, 53 counties have signed the Singapore Convention and five countries have ratified it. 

Introduction

On 7 August 2019, 46 countries signed the Singapore Convention on Mediation with the hope that it would add mediation as the missing third piece in international dispute resolution alongside arbitration, with awards enforced through the New York Convention, and cross-border litigation.

We issued an Alert then, anticipating a quick ratification process, but no one could predict that ratification would also take place in the present situation, with the explosion of the COVID-19 pandemic this year.

Takes Effect 12 September 2020

Article 14 of the Singapore Convention states that it shall take force six months after three countries have ratified it.

By 12 March 2020, three countries had indeed quickly ratified the Singapore Convention, namely Fiji, Singapore and Qatar. Accordingly, the Singapore Convention will come into force on 12 September 2020.

As of 17 August 2020, 53 counties have signed the Singapore Convention and five countries have ratified it (Fiji, Singapore, Qatar, Saudi Arabia and Belarus).

Companies with business interests in different countries should bear in mind that settlement agreements can be enforced by them, or enforced against them as the case may be, in countries that have ratified the Singapore Convention―even if their principal home countries have not signed or ratified the Singapore Convention.

How Will COVID-19 Impact Dispute Resolution?

The COVID-19 pandemic has seriously disrupted the global economy and the daily lives of people. There is a need to adapt to the new situation now and as it further evolves. The Singapore International Mediation Centre (SIMC), for example, has issued a COVID-19 protocol, which will remain in force until 31 December 2020. The protocol, among other things, provides for mediation to be conducted online within 10 working days of payment of the requisite filing fees.

Conclusion

The COVID-19 pandemic has resulted in a number of commercial disputes where breaches of contract have occurred, not through parties’ faults but rather due to circumstances beyond their control. Resolving these disputes may require the flexibility of culturally sensitive communications between parties from different countries and jurisdictions, as well as creative thinking instead of adherence to strict legal rights.

With the Singapore Convention becoming effective, what was a possibility is now reality and part of the international business landscape. The onset of the COVID-19 pandemic creates new opportunities, which can be met by mediation as a new mode of resolution for international commercial disputes and enforcement of international settlement agreements reached from such mediations.

For More Information

If you have any questions regarding this Alert, please contact Sean La'Brooy, Leon Yee, any of the attorneys in the Duane Morris & Selvam Singapore office or the attorney in the firm with whom you are regularly in contact.

Disclaimer: This Alert has been prepared and published for informational purposes only and is not offered, nor should be construed, as legal advice. For more information, please see the firm's full disclaimer.