SIMC and ICSID conclude cooperation agreement
The Singapore International Mediation Centre (SIMC) and ICSID are pleased to announce that they have entered into an Agreement on General Arrangements. The Agreement was signed on behalf of SIMC by George Lim, Chairman of SIMC, and on behalf of ICSID by Gonzalo Flores, Deputy Secretary-General of ICSID.
The Agreement provides for the use of SIMC’s facilities and services for mediation proceedings conducted under the auspices of ICSID, as well as enhanced technical collaboration between the two centres.
The Agreement complements the use of mediation to settle investor-State disputes, particularly those involving Asian investors or States. By some estimates, the region will account for over half of the world’s GDP by 2040 and 40 per cent of global total consumption.
The Agreement was signed on March 26 during an online ceremony, which also included a panel discussion on the opportunities and challenges with respect to investor-State mediation.
The ICSID-SIMC Agreement was signed by George Lim SC (right), Chairman of SIMC, and Gonzalo Flores, Deputy Secretary-General of ICSID.
Meg Kinnear, Secretary General of ICSID, said:
“This is the first cooperation agreement for ICSID with a centre that is exclusively focused on mediation and I am delighted that it is with an institution as respected as SIMC. Mediation is one of a number of dispute settlement mechanisms available to parties at ICSID. It may be used on its own, or in combination with other procedures, such as arbitration and fact-finding. Ultimately, the goal is ensuring that parties have a choice of dispute settlement options, depending on the circumstances of the dispute and the desired outcomes.”
George Lim SC, Chairman of SIMC, said:
“The Agreement encourages mediation as a viable option for investor-State disputes, especially where long-term contracts and bread-and-butter issues are concerned. These are high stakes matters where parties’ real interests may lie beyond mere monetary compensation. Further, mediation is deeply rooted in Asian traditions of relationship and face-giving. Parties who choose amicable settlement will enjoy the practical advantage of business continuity and new business opportunities in future. We look forward to working closely with ICSID to increase the use of mediation for investor-State disputes in the region.”