Singapore’s Law Minister Shanmugam has said that arbitration is an effective method of dispute settlement. He said the new treaty on arbitration would increase Singapore’s’ value to Indian companies as well as advocates. The Singapore Treaty on Arbitration came into force from September this year. This is the first UN treaty in the name of Singapore. It is also called the United Nations International Settlement Agreement Treaty as a result of arbitration. The treaty provides an effective way of mediation in settling mutual commercial and large corporate disputes in India and other countries.
So far 53 countries have signed this treaty
Interviewed with PTI-language through a zoom video call, Shanmugam of Indian origin said that this treaty is very important for companies with international trade. He said, “We have a strong relationship from people to people, business flow, legal flow. I think this will increase the importance of Singapore to Indian companies and advocates. He said that if seen from the perspective of Indian advocates, their business will not be taken. They will keep doing business. They will be able to operate in Singapore, which will be an attractive destination for them. So far 53 countries have signed the treaty. Only a few countries have ratified the treaty. India has not yet ratified the treaty.
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The Singapore minister said that mediation is an effective method of dispute settlement. This allows business relationships to continue. Shanmugam said that so far there has been a drawback in arbitration, if there is an arbitration agreement, but one party does not fulfill it, then it cannot be implemented effectively. He said, “After this treaty, the countries approving it will have to implement it.” Our intention is to encourage more and more countries to approve it. The minister said that arbitration is a step before the tribunal. He said that litigation and arbitration are costly procedures.