Mediation is a voluntary, confidential negotiation guided by a neutral mediator. For international disputes, this is an underestimated instrument. Since the Singapore Convention (2019), mediation settlements are enforceable worldwide in signatory states. In our practice, we resolve approximately 60 percent of international disputes via mediation — faster and cheaper than arbitration.
What is the legal problem?
Mediation has no binding outcome unless the parties sign an agreement. For international disputes, a good mediator bridges culture, language, and commercial context. A wrong choice of mediator or timing can turn mediation into a waste of time. A timely attempt at mediation often avoids lengthy arbitration or proceedings.
What does the law say?
The EU Mediation Directive (Directive 2008/52/EC) governs commercial mediation between EU parties. The Singapore Convention (2019) makes international commercial mediation settlements enforceable worldwide. Under Dutch law, Article 22a of the Code of Civil Procedure provides for mediation in civil proceedings. ICC, NAI (Mediation Rules 2024), SIAC, and JAMS offer international mediation services.
IMI certification and the MfN register are relevant in the Netherlands for mediator quality.
What risks do companies face?
Mediation without preparation leads to a weak negotiating position. Confidentiality is essential but not always absolutely guaranteed. Mediation can be used by the opposing party to stall for time. Without commitment from both parties, mediation fails. In the event of cultural mismatches with the mediator, the process stagnates.
Practical example from our practice
We represented a Dutch and an Italian company in a dispute regarding a fifteen-year collaboration. Litigation would have permanently damaged the relationship. Within three months, an ICC mediator facilitated structured discussions in which the parties reached a settlement. The collaboration continued with adjusted terms. Litigation would have lasted years, cost an estimated 1.5 million euros, and destroyed the relationship.
What can you do?
Incorporate multi-tier dispute clauses (mediation, then arbitration). Select a mediator with international and sector experience. Prepare mediation thoroughly with BATNA analysis. Grant mandate to decision-makers. Document the settlement carefully to ensure international enforceability under the Singapore Convention. See also our article on International mediation explained.