Mediation is a dynamic, structured, interactive process where a neutral third party, the mediator, assists disputing parties in resolving conflict through the use of specialized communication and negotiation techniques. The mediator does not render a decision. It is up to the parties to achieve an agreement.
Arbitration is a form of extrajudicial dispute resolution that parties can use to achieve speedy and high-quality results in settling disputes. Arbitrators render their formal decision. This arbitral award is enforceable in more than 150 jurisdictions under the New York Convention (1958), which includes countries that are not a party to bilateral judicial enforcement treaties.
Mediation and arbitration might be considered complementary procedures. If parties cannot obtain an agreement on settlement of their dispute by mediation, they can proceed to arbitration. Arbitration proceedings will result in an arbitral award, which is legally binding.