Why Mediation Matters Now

Globalization has made supply chains, investments, and partnerships more international than ever before. At the same time, geopolitical rivalries, trade wars, and protectionist policies have increased friction. Disputes between corporations in different jurisdictions—say, an Indian pharmaceutical exporter and a European distributor, or a U.S. tech company and a Chinese supplier—cannot always be effectively resolved through traditional court systems. Litigation is expensive, adversarial, and uncertain; arbitration, though more flexible, is increasingly criticized for being costly and drawn-out.

Mediation offers a middle path. It allows parties to retain control, preserve relationships, and craft creative solutions that a court or tribunal could never impose. This collaborative approach is particularly important in cross-border contexts, where business ties often need to continue even after disputes are resolved.

The Singapore Convention: A Global Turning Point

A milestone in this field came with the United Nations Convention on International Settlement Agreements Resulting from Mediation (2019), better known as the Singapore Convention on Mediation. Much like the New York Convention did for arbitration in 1958, this treaty provides a framework for the enforcement of mediated settlements across signatory states.

As of today, more than 55 countries have signed, including major economies such as the U.S., China, India, and South Korea. While not all have ratified it, the Convention signals a significant shift: mediation is no longer a mere voluntary option; it is becoming a globally recognized and enforceable process.

Contemporary Applications

Recent disputes highlight mediation’s growing relevance. In the wake of the Russia-Ukraine conflict, mediation has been floated as a method for resolving disrupted energy contracts without lengthy litigation in hostile jurisdictions. Similarly, cross-border insolvency cases, like those involving Evergrande in China, have underscored the need for flexible frameworks that can balance competing creditor interests worldwide.

Technology, too, has transformed mediation. The rise of online dispute resolution (ODR) platforms enables parties in different continents to negotiate in real time, lowering costs and logistical barriers. The pandemic accelerated this trend, proving that virtual mediation can be both efficient and effective.

India’s Mediation Moment

India, long criticized for judicial delays, has recently taken decisive steps toward institutionalizing mediation. The Mediation Act, 2023, provides a statutory framework for both domestic and international mediation, bringing India closer to aligning with global practices. Coupled with India’s participation in the Singapore Convention, this development could make the country a hub for commercial dispute resolution in Asia.

However, challenges remain. Awareness about mediation among businesses is limited, and many still view it as a weaker alternative to arbitration or litigation. For mediation to succeed, trust in the neutrality of mediators, enforceability of settlements, and institutional infrastructure must be strengthened.

The Road Ahead

The world is entering a phase where disputes will not diminish but multiply—whether over trade, technology, intellectual property, or investment treaties. Courts alone cannot handle this volume, nor are they always the best forum for complex international conflicts. Mediation, by contrast, offers diplomacy without compulsion, cooperation without surrender.

Yet, its success will depend on global consensus and genuine buy-in from corporations, states, and individuals. Mediation cannot be seen merely as an “alternative”; it must be mainstreamed as a first response to cross-border disputes.

In a world often divided by politics, mediation represents not just a dispute resolution tool but a philosophy: that even in conflict, conversation can prevail over confrontation. And in the fragile fabric of global commerce, that may be the most valuable settlement of all.