“Fair Mediation+ SCIA Arbitration+ Self-Discipline”: SCIA Facilitates Resolution of International Trade Disputes at the 134th Canton Fair

The 134th Canton Fair (hereinafter as the “Fair”) offline exhibition ended in Guangzhou on 4 November 2023, and the online platform is operating normally. As of 3 November, a total of overseas buyers from 229 countries and regions had participated in the Fair online and offline, including 126,343 buyers from countries participating in the Belt and RoadInitiative, accounting for 63.9% of the total buyers.

As the only international arbitration institution designated in theRules for the Prevention and Resolution of Trade Dispute in China Import and Export Fair approved and implemented by the Ministry of Commerce, this year marks the 17th year of cooperation between the South China International Economic and Trade Arbitration Commission (also known as the Shenzhen Court of International Arbitration, hereinafter the “SCIA”) and the China Foreign Trade Centre in innovating the Faircomplaint and dispute resolution mechanisms with the support and guidance of the Ministry of Commerce. Since the 102nd Fair in 2007, the SCIA has been stationed at the Fair Complaint Station for IPR and Trade Dispute (hereinafter the “Fair Complaint Station”) for 33 consecutive sessions, using an innovative mechanism with Chinese characteristics of “Fair Mediation + SCIA Arbitration + Self-Discipline” to resolve international trade and intellectual property disputes in an efficient, professional and harmonious manner. The mediation and arbitration services provided by the SCIA at the Fair has reached 120 countries and regions around the world, ensuring high-quality development of China’s international trade and a high-standard opening up.

Duringthe 134th Fair, the mediation experts organized by the SCIA simultaneously handled complaint acceptance and dispute mediation both online and offline, combining mediation and arbitration. The parties involved in the complaints came from diverse countries such as Pakistan, Afghanistan, Morocco, Sri Lanka, Indonesia, Turkey, Yemen, Peru, United Arab Emirates, Egypt, Tanzania, Iran, Romania, Italy, South Africa, Ireland, Canada, Libya, Philippines, India and more. Over 90% of the parties are from countries along the Belt and Road Initiative, including China. The success rate of mediation cases exceeds 60%.

The on-site mediation and arbitration services of the 134th Fair continues to maintain the efficiency, professionalism and harmony as previous Fairs. Some of the settlement agreements reached by Chinese and foreign parties under the auspices of the SCIA were converted into arbitral awards and thus obtained legally enforceable effects. Some are performed directly at the venue through electronic payment methods.

Parties at the Canton Fair performed their settlement agreement through electronic payments at the venue

Parties at the 102nd Canton Fair performed their settlement agreement by cash at the venue

Here are some mediation cases study at the 134th Fair:

Case 1: A bridge to communicate and to reach out to the world

This is the first case accepted by the Fair Complaint Station in which both parties are foreign merchants. The claimant and the respondent were merchants from the chambers of commerce of Indonesia and Turkey, respectively, and they had a dispute over whether the discount promised by the seller during the transaction of goods should be fulfilled. The SCIA mediation experts Ji Jianfeng, Chen Hui and Tan Chu patiently listened to the demands of both parties, tried their best to restore the real transaction background, introduced the precautions for contract signing and the advantages of choosing arbitration as a dispute resolution method, and finally provided a settlement plan for both parties.

Case 2: Facilitating transactions for mutual benefit and win-win results

This case witnessed several days of relay mediation conducted by mediation experts. A dispute arose between a buyer from the United Arab Emirates and a Chinese seller who failed to deliver goods on time due to insufficient export credit insurance, financial constraints and other reasons. After the relay mediation of the SCIA mediation experts Wang Fang, Ji Jianfeng and Chen Hui, it was understood that both parties wanted to continue the transaction and were willing to have a long-term cooperation in the future. Both parties actively coordinated to secure support from the local government and successfully obtained sufficient export credit insurance. The parties involved reached a settlement agreement to continue to perform the contract and agreed that any disputes arising from the settlement agreement would be submitted to the SCIA for arbitration.

Case 3: Efficient mediation and handshake harmony

This case saw the parties involved reached a settlement agreement and performed it at the venue. The dispute arose between a buyer from Yemen and aseller from China who requested a refund of the deposit due to delays in delivery of transactions that occurred during the 132nd Fair. Upon receiving both parties at the Fair Complaint Station, the SCIA mediation experts Zhang Jia, Wu Songda, and Feng Qian carefully sorted out the facts of the case and offered patient guidance to the parties involved. Within a short period of time, both parties expressed their willingness to make concessions and accepted the settlement agreement to return 50% of the deposit. The settlement agreement was signed under the witness of the SCIA mediation experts, and the agreement was performed at the venue through electronic payment.

Over the past 17 years, the SCIA has continued to innovate with the Fair, and has always insisted on escorting the international trade transactions of the Fair, enhancing the confidence of global sellers and buyers in economic and trade exchanges with China, and promoting the stabilization of scale and optimization of structure of foreign trade, advancing high-standard opening up, and serving the establishment of a new development paradigm.

Behind the scenes: the SCIA mediation experts mediating at the Fair Complaint Station during the 134th Fair.