We live at a time when globalization is pervasive in all aspects of our lives, with unavoidable implications for business and international commerce. We frequently come across business transactions involving two foreign parties. We are seeing a decrease in the importance of national identity in foreign trade policies.
As the globalization of commerce increases disputes involving parties from diverse countries, the applicable legislation in the event of a commercial dispute continues to be a source of debate. Although the disputing parties might decide the governing jurisdiction in specific instances based on their national legislation and settlement agreements, they must still consider whether the jurisdiction’s ruling will be applicable across borders. Orders can be enforced by recognition and enforcement in other nations; however, this procedure is lengthy and cumbersome, which discourages international investment.
Moreover, legal institutions cannot keep up with the acceleration of business. Yet, is there an alternative? While arbitration is frequently referred to as an alternative to litigation, it also necessitates a trial and investigation procedure. This method may offer several benefits depending on the facts of the case; nonetheless, it is still not a convenient substitute for litigation. In this case, mediation comes forward as the most viable alternative dispute resolution option, enabling parties hesitant to halt their business for legal proceedings to reconciliation, regardless of whether they are right or at fault.
When the parties to the mediation are from the same country, the conditions agreed upon will be subject to the applicable national legislation. However, if they are from different countries and one of the mediated provisions is violated, we must consider how the settlement agreement applies to the counterparty and to what degree it is enforceable.
In this context, the Singapore Convention on Mediation offers a viable option, allowing mediated settlements to be executed anywhere globally. The Convention entered into force in Turkey on 11 April 2022. With the Convention, the disputing parties will benefit from the mediation method, which is a more practical alternative to litigation, even if they are from different countries, encouraging foreign individuals and entities to invest in Turkey with more confidence.
