THE SINGAPORE CONVENTION - A NEW MECHANISM FOR RESOLVING INTERNATIONAL TRADE DISPUTES

Аннотация

The UN Convention on International Agreements on the Settlement of Disputes by
Mediation, better known as the Singapore Convention, was adopted in December 2018, and
opened for signature on August 7, 2019. By January 2021, a total of 52 countries have signed
the Singapore Convention, including the Republic of Serbia. The Singapore Convention gives
international force to agreements reached in the mediation process, which resolve commercial
disputes, which represents a significant step forward in the resolution of international trade
disputes. For international companies, the adoption of such a legal document is of great
interest, given that it provides them with an effective alternative to litigation and arbitration
in resolving their cross-border disputes, especially during the global Covid-19 pandemic.
The aim of this convention is to promote the execution of international agreements that are
the result of the mediation process. Arbitration is considered the most preferred mechanism
for solving international trade disputes at the moment, due to the ease of enforcement of
arbitration decisions through the UN Convention on the Recognition and Enforcement of
Foreign Arbitral Awards, better known as the New York Convention. As the New York
Convention regulated the area of enforcement of foreign arbitration awards, mediation in this
area had a legal gap, which made it impossible for cross-border mediation to take root, which
was just removed by the Singapore Convention. Given the large number of signatories to the
Singapore Convention in a short time since its adoption, states have shown their willingness
to support this type of trade dispute resolution.