Authored by - Khushi Goel
Designation - Member, MediateGuru
Introduction
From the smaller neighbour argument to the tectonic trade or international disputes, the most popular as well as effective way is Mediation. Relatively, any scenario where parties would have a legal disagreement could be applicable or appropriate for this form of dispute resolution. Everywhere in the world where there is constructive development is happening, unfortunately, is prone to dispute and this is solved by the conventional path which is litigation which is a pricey and lengthy-winded affair. But now, in the 21st century, the modern way to solve disputes is alternative dispute resolution, which has the motive to provide social-economic, and political justice and maintain integrity in society. There are various methods in ADR such as arbitration, mediation, negotiation, and conciliation but the most effective as well as efficient way is mediation.
Mediation: The Key
Mediation is a form of ‘Alternative Dispute Resolution (ADR), which is a very ancient practice that has been developed for modern usage and becomes a key to handling any conflict as it keeps the channels of communication wide open and solves any type of dispute amicably due to the fact that it allows parties to communicate with each other and resolve that dispute with the help of a third neutral party. Additionally, Mediation is much quicker and more painless than dealing with court and this component of ADR can be used in earlier stages of a dispute before legal costs become overwhelming and both parties feel dug into their positions. It will always be more cost-effective to mediate rather than take the issue to court.
The Nexus Between Mediation And International Trade Dispute
The United Nations Security Council (UNSC) defines “International Disputes” as a conflict of legal dispute. It refers to any disagreements between nations on any fact, issue, interest, or subject matter in the political, ideological, or legal arena. There are various types of international disputes between different countries, in which one the type is disputes over international trade agreements. liberalization of the world market and as a result, a large number of international trade is taking place and leading towards the development and progress, along with the development there is a proportionally increase in the disputes. In order to solve such disputes, parties are highly relying and depending on arbitration in order to enforce their rights and protect their commercial interests. Internationally parties choose arbitration over mediation but now there are changes as international bodies have included the mediation clauses and specific rules where, Investment mediation comes as a complementary tool that is effective as well as efficient and also prevents the intensification of conflicts. Such type of development in the legal world has shown an increasing significance of mediation over arbitration and addressing the grey area of conflict through the process of mediation. Further, the United Nations (UN) member states have also signed an international treaty that aims at resolving cross-border trade disputes through mediation which means that the mediation process is playing a commanding role in the international trade agreements to promote trust, peace, and security to deepen international relations.
Conclusion
Alternative dispute resolution’s component arbitration is the famous together preferable form for the parties due to the fact that it made the decision enforceable but that decision affects the impairing businesses’ confidence as well as creates a notion of political instability.
Therefore, to resolve cross-border financial and commercial disputes, the combination of both (med-arb) will be the best alternative to maintain a mutually beneficial relationship.