I need a customs consultation. What are the differences between trade dispute mediation and arbitration procedures?

Hello. This is the customs attorney conducting customs consultations at Daeryun Law Firm.

In resolving trade disputes, mediation procedures are procedures in which a third party helps dialogue between disputing parties and leads negotiations.

Mediators do not make legal decisions or judgments, but provide advice from a neutral position to help the parties reach an agreement.

The main feature of mediation is that the result has no legal binding force.

That is, the dispute is resolved only when the parties agree on the mediation result.

Mediation is mainly used to follow another's decision when agreement is not reached in negotiations.

Mediation procedures are quick and inexpensive, but if the parties do not reach agreement, the dispute may continue.

Also, arbitration procedures, unlike mediation, are procedures in which a third party arbitrator makes a final decision on the dispute.

The arbitrator makes a judgment from a neutral position based on the arguments and evidence of both parties.

Costs incurred in arbitration procedures may be relatively high.

It is often impossible to appeal the arbitrator's decision, so if a party receives an unfavorable decision, they must accept it.

Mediation has no legal effect if no agreement is reached between the parties, but in arbitration, the arbitrator's decision has legal effect.

Mediation is a process that promotes agreement through negotiation, while arbitration is a legal procedure in which the arbitrator makes the final decision.

Depending on how the trade dispute occurred, the choice of resolution method will also vary. If you are in a difficult situation, we recommend receiving customs consultation from related legal experts such as customs attorneys.