What are the differences between mediation and arbitration in international litigation?

Mediation and arbitration are two common forms of alternative dispute resolution (ADR) used in international litigation. Both involve an outside third party, who is impartial and not connected to either side of the dispute. The main difference between mediation and arbitration is the amount of authority each possesses. In mediation, the mediator does not have the authority to make a binding decision on the outcome of the dispute. Instead, their role is to facilitate a settlement by providing the parties the opportunity to negotiate and discuss the issues. The mediator does not make any decisions and the parties are free to agree on a settlement or not. In arbitration, the arbitrator has the authority to make a binding decision on the outcome of the dispute, based on the evidence and information each party has presented. Unlike mediation, there is no chance to negotiate or discuss the issues. The arbitrator is the decision-maker and can impose a settlement on the parties. When deciding between mediation and arbitration, parties must consider the degree of authority they want a third party to have in settling their dispute. Parties also have to consider time, cost, and confidentiality. Both mediation and arbitration have their advantages, depending on the particular situation.

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What are the differences between mediation and arbitration in international litigation?

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