Originially from: World Arbitration and Mediation Review (WAMR)

Model Law on International Commercial Conciliation
The United Nations Commission on International Trade Law (Uncitral)
has drafted the Model Law on International Commercial Conciliation. U.N. Doc.
A/CN.9/WG.II/WP.108. The Model Law is meant to serve as an efficient and
effective dispute resolution system for business transacted across national
boundaries. It is designed to encourage states to develop non-adjudicatory dispute
settlement procedures. Such a practice should decrease the cost of settling
disputes and increase the stability of international trade.
When using the term “conciliation,” the Model Law refers to any
proceedings or process in which an independent and impartial person or panel of
persons assists the parties to a dispute in reaching a settlement of the matter.
“Alternative dispute resolution” is a term used to refer to techniques for solving
disputes by conciliatory means rather than by a binding procedure like arbitration.
Unlike arbitration, conciliation allows the parties to retain ultimate control over
the process and the outcome. Each conciliation technique has different
procedures for reaching a settlement between the parties.
In preparing the Model Law, the Commission espoused a broad notion of
conciliation, that incorporated “mediation,” “alternative dispute resolution,” and
“neutral evaluation” and applied to a broad range of commercial disputes.
Although the Model Law is designed to apply only to international and
commercial cases, the enacting state can extend its scope of application to
domestic commercial disputes and certain non-commercial disputes.
The Model Law is a recommendation to States to incorporate a similar
legislative text into their national law. The Model Law may be modified to adapt
it to the States’ national judicial system and trial process. In order to achieve
uniformity and certainty, States are encouraged to make as few changes as
possible in incorporating the new Model Law into their legal systems. In any
event, any changes should remain within the basic principles of the Model Law so
that the law remains familiar to foreign parties, advisers, and conciliators.
A Brief Overview of the Provisions
Articles 1 through 3 of the Model Law provide background information,
define conciliation, and explain its international application. Articles 4 through 9
cover the rules for regulating conciliation procedures. These procedural rules
apply especially in circumstances in which parties have not adopted rules
governing dispute resolution processes. They are, therefore, designed to function
as default provisions. When the parties have agreed upon dispute resolution rules
and procedures, the Uncitral rules act as only a supplement to the agreed-upon
provisions. The remainder of the Model Law addresses post-conciliation issues.
Although article 1 states that the provisions apply to international
commercial conciliation, the scope of the Model Law—as noted above—is quite