Iraq Signs UN Convention on International Settlement Agreements Resulting from Mediation

On 19 April 2024, Iraq took a significant stride by officially signing the Singapore Convention on Mediation, signaling its commitment to Alternative Dispute Resolution (“ADR”) mechanisms aimed at the development of foreign investment in the country. While Mediation, as an ADR concept, is relatively new within the Iraqi judicial system, both the government and the supreme judicial council have been actively engaged in raising awareness across relevant sectors regarding ADR for the past few years. Currently, we await the official ratification of the Singapore Convention by parliament, transforming it into law.

The Singapore Convention, a multilateral treaty, aims to streamline the cross-border enforcement of commercial disputes resolved through mediation. Adopted by the General Assembly in 2018 and opened for signature in Singapore in 2019, it applies to written settlement agreements deemed international, wherein the parties involved have their places of business in different states, or the agreement’s performance or subject matter is connected to a different state than the parties’ places of business. Particularly, it excludes settlement agreements for personal, family, or household purposes, along with those pertaining to family, inheritance, or employment law, as well as agreements approved by a court, concluded in court proceedings, or recorded and enforceable as an arbitral award.

Under the Convention, each Party (a state that has ratified or acceded to the Convention) commits to enforcing settlement agreements in accordance with its procedural rules and the Convention’s stipulations. A party seeking relief under the Convention must provide the competent authority of the relevant Party with the signed settlement agreement and evidence of its mediation origin. The competent authority may refuse relief only on limited grounds such as incapacity, invalidity, non-compliance, or public policy of the Party to the Convention, and is mandated to expedite the consideration of relief requests.

Parties to the Convention have the right to make reservations, subject to confirmation upon ratification, acceptance, approval, or accession. Permitted reservations include non-application of the Convention to settlement agreements involving the reserving Party or its governmental agencies, or limited application based on the parties’ agreement. Reservations can be withdrawn at any time.

This development will impact all commercial sectors, affecting future disputes across industries, excluding matters concerning family and labour laws, within Iraq.

How can we help?

Al Tamimi & Company has a longstanding commitment to advising clients on ADR, including mediation. Our experienced team is adept at negotiating, drafting settlement agreements, and crafting mediation agreements tailored to your specific needs.