Singapore Convention: New directions for international commercial mediation in Brazil
On July 2, 2025, the Brazilian Federal Senate approved the United Nations Convention on International Settlement Agreements Resulting from Mediation, known as the Singapore Convention on Mediation (PDL 228/2024). For the Convention to enter into force in Brazil, it must now be promulgated by the President of the Republic — a formal act that will render its provisions binding.
Adopted by the United Nations in 2018 in Singapore, the Convention’s main objective is to provide legal certainty and international enforceability to settlement agreements reached through cross-border commercial mediation. For example, suppose two parties resolve a dispute through mediation and enter into a settlement agreement. In that case, the Singapore Convention allows the agreement to be directly enforced in other signatory states or submitted to local courts as evidence that the matter has been resolved. The Convention enables enforcement without the need for prior judicial or arbitral proceedings in each jurisdiction.
To enforce a mediated agreement abroad, the parties must submit to the competent authority in the requested country — as defined by each signatory state — a copy of the signed settlement agreement, along with a translation into the official language of that jurisdiction (if required), and supporting documentation showing that the agreement was reached through a mediation process. Once submitted, the agreement may be enforced or serve as evidence that the dispute has been resolved.
The Convention benefits international mediation. It is worth noting that Brazilian statutes already support the enforcement of mediation agreements. For instance, the sole paragraph of Article 20 of the Brazilian Mediation Law (Law No. 13,140/2015) states that “the final mediation term, in the case of a settlement agreement, constitutes an extrajudicial enforcement instrument and, when judicially ratified, a judicial enforcement instrument.” In addition, Article 515, item III of the Brazilian Code of Civil Procedure recognizes as a judicial enforcement instrument “the decision that ratifies an out-of-court settlement of any nature.” Similarly, Article 784, IV recognizes as an extrajudicial enforcement instrument “the settlement instrument endorsed by the parties’ lawyers or by a court-accredited conciliator or mediator.”
The approval of the Singapore Convention on Mediation reinforces domestic legislation and promotes the use of appropriate dispute resolution mechanisms in international business.
To date, approximately 57 countries have signed the Singapore Convention on Mediation, including China and the United States — two of Brazil’s main trading partners.
Additionally, China recently announced an investment of BRL 27 billion in Brazil, spanning sectors such as automotive, energy, and food. The promulgation of the Singapore Convention on Mediation will make Brazil even more attractive for foreign investment.
In the context of cross-border transactions, particularly those involving foreign capital, alternative dispute resolution methods are viewed favorably. International investors are often reluctant to litigate in the domestic courts of the host country, which are often perceived as part of the local institutional and political framework. Unlike litigation or arbitration, where outcomes are imposed by an adjudicator based strictly on the law, mediation is a consensual process. The mediator does not decide the case but facilitates dialogue and agreement through structured techniques. Mediation is generally faster, more cost-effective, and conducive to preserving long-term commercial relationships. Rather than applying the law in a rigid, winner-takes-all manner, mediation seeks mutually beneficial solutions tailored to the interests of both parties.
Souto Correa’s Dispute Resolution team is available to assist with any questions regarding the Singapore Convention and the new rules when drafting and reviewing contracts.