IRAM CHAUDHRY AND TABUT VICTORIA.

INTERNATIONAL COMMERCIAL CONCILIATION.

This is a method by which the differences between nations may be settled by
means of a commission employed to consider and report upon such
differences.
When conciliation is used, a commission of inquiry is introduced to
investigate and report on the facts surrounding a particular dispute. The
report need not be in the form of an award, and the parties involved may
freely decide whether or not they will give it any effect. Conciliation is
distinguishable from Arbitration in that the terms of a conciliation settlement
constitute mere proposals to the disputing powers, whereas an arbitration
settlement is binding.
The convention that mostly applies to this particular issue is the UNCITRAL
MODEL LAW ON INTERNATIONAL COMMERCIAL CONCILIATION.

It recognizes the value for international trade of methods for settling

commercial disputes in which the parties in dispute request a third
person or persons to assist them in their attempt to settle the dispute
amicably.

Under the convention:

1. Conciliation means a process, whether referred to by the expression
conciliation, mediation or an expression of similar import, whereby
parties request a third person or persons (the conciliator) to assist
them in their attempt to reach an amicable settlement of their dispute
arising out of or relating to a contractual or other legal relationship.
The conciliator does not have the authority to impose upon the parties
a solution to the dispute.
2. An international conciliation is where by:
The parties to an agreement to conciliate have, at the time of the
conclusion of that agreement, their places of business in different
States; or
The State in which the parties have their places of business is
different from either: The State in which a substantial part of the
obligations of the commercial relationship is to be performed; or
The State with which the subject matter of the dispute is most
closely connected.
3. Conciliation proceedings in respect of a dispute that has arisen
commence on the day on which the parties to that dispute agree to
engage in conciliation proceedings.

4. If a party that invited another party to conciliate does not receive an

acceptance of the invitation within thirty days from the day on which
the invitation was sent, or within such other period of time as specified
in the invitation, the party may elect to treat this as a rejection of the
invitation to conciliate.
5. There is one conciliator or otherwise as the parties decide. The
conciliator should disclose any circumstance that could give rise to any
doubt or independence.
6. Parties agree on how the conciliation is to be conducted. If there is no
agreement the conciliator may conduct the proceedings that he feels
appropriate and he shall seek to maintain fair treatment among both
parties.
7. The conciliation proceedings are terminated:
(a) By the conclusion of a settlement agreement by the parties, on the
date of the agreement;
(b) By a declaration of the conciliator, after consultation with the
parties, to the effect that further efforts at conciliation are no longer
justified, on the date of the declaration;
(c) By a declaration of the parties addressed to the conciliator to the
effect that the conciliation proceedings are terminated, on the date of
the declaration; or
(d) By a declaration of a party to the other party or parties and the
conciliator, if appointed, to the effect that the conciliation proceedings
are terminated, on the date of the declaration.