Mediation is one of the oldest forms of dispute resolution outside formal judicial systems. Its effectiveness in achieving durable outcomes and fostering voluntary agreements has made it a widely accepted method—even in international disputes between states. Moreover, mediation is recognized as a cornerstone of restorative justice in criminal law. Despite the reluctance of some states to embrace mediation in criminal matters, today it is accepted in France and other Western countries—as well as in Iran (Articles 82 to 84 of the Iranian Criminal Procedure Code)—for minor offenses and sixth-degree crimes.

With the expansion of global trade, mediation has evolved beyond domestic commercial matters into the realm of cross-border commerce. Like international commercial arbitration, international commercial mediation is now governed by global conventions and supported by reputable transnational and regional institutions.

Definition:

International commercial mediation is a voluntary, informal, confidential, and flexible process for resolving cross-border commercial disputes. In this process, neutral third-party mediators help disputing parties reach a mutually acceptable agreement without resorting to litigation or arbitration.

Unlike arbitrators or judges, mediators act as facilitators rather than decision-makers. They structure the dialogue, maintain a constructive atmosphere, and help clarify the parties’ positions and interests. The mediator may suggest creative solutions but does not impose them. If the process results in an agreement, the mediator ensures it is signed by both parties. The resulting settlement, known as a “mediation agreement,” is legally enforceable in court.

Key Advantages of International Commercial Mediation:

 -Preservation of business relationships due to amicable resolution;

-Lower costs compared to litigation or arbitration;

-Faster resolution of disputes;

 -Voluntary participation and the ability to withdraw from mediation before the agreement is signed;

 -Enforceability of settlement agreements under the Singapore Convention on Mediation.

While mediation has clear advantages, it is not without risks. One major concern arises when mediators lack legal training. If the mediator is not a qualified attorney or fails to consult legal counsel when drafting the settlement, the agreement may violate legal standards—rendering it invalid and unenforceable in court, despite the time and effort invested.

To avoid such pitfalls and ensure the legal soundness of the mediation outcome, it is highly advisable to select mediators who are licensed attorneys. Attorneys are legally trained, sworn to uphold justice, and subject to oversight by bar associations and regulatory bodies—similar to judges.

Mr. Khademi’s Legal & Mediation Practice boasts over 20 years of experience in litigation and the successful facilitation of numerous commercial settlements. Mr. Khademi holds a Class A Iranian legal license and is also a registered member of the International Bar Association. His firm, AdvoLink, based in the Netherlands, offers commercial mediation services under Dutch law and is committed to helping parties reach enforceable and fair outcomes in their disputes.