International Mediation in Turkey: Cross-Border Commercial Disputes

Introduction

International mediation in Turkey has become an increasingly important dispute resolution mechanism for foreign investors, multinational companies, exporters, importers, manufacturers, distributors, technology businesses, logistics providers and companies involved in cross-border commercial transactions.

International business disputes often create significant legal and operational risks. The parties may be located in different countries, use different languages, operate under different legal systems and disagree about the court or arbitral tribunal that has jurisdiction. A dispute may also involve foreign currency, international bank transfers, customs procedures, transportation documents, corporate guarantees and assets situated in more than one jurisdiction.

Traditional litigation may require proceedings in several countries. International arbitration may provide a neutral forum, but it can also involve substantial institutional, tribunal, expert and legal costs. Mediation offers the parties a confidential and flexible opportunity to resolve their disagreement without waiting for a final court judgment or arbitral award.

Turkey has a developed statutory mediation framework. Law No. 6325 on Mediation in Civil Disputes expressly applies to private law disputes containing a foreign element, provided that the parties may freely dispose of the subject matter. Therefore, the fact that one or more parties are foreign does not prevent the dispute from being mediated in Turkey.

International commercial mediation in Turkey may be used voluntarily or, where Turkish procedural law requires it before a lawsuit, as mandatory mediation. A foreign company intending to bring a covered commercial monetary claim before a Turkish commercial court may be required to complete the Turkish mandatory mediation process first.

Turkey is also a party to the United Nations Convention on International Settlement Agreements Resulting from Mediation, commonly known as the Singapore Convention on Mediation. Turkey ratified the Convention in 2021, strengthening the legal framework for the cross-border enforcement of qualifying international commercial mediation settlements.

This article explains international mediation in Turkey, including foreign-element disputes, mandatory commercial mediation, choice of mediator, applicable law, jurisdiction, online mediation, representation of foreign companies, bilingual settlement agreements, enforceability under Turkish law and the Singapore Convention.

What Is International Mediation?

International mediation is a structured negotiation process used to resolve a dispute involving parties, transactions, obligations, assets or legal systems connected with more than one country.

The process is conducted with the assistance of an independent and impartial mediator. The mediator facilitates communication and negotiation but does not issue a judgment or arbitral award.

A dispute may be international because:

• The parties have places of business in different countries;
• One party is a foreign individual or company;
• The contract was signed in one country and performed in another;
• Goods were exported or imported;
• Payment is required through an international bank transfer;
• The contract is governed by foreign law;
• A foreign court or arbitration clause exists;
• The relevant assets are situated abroad;
• The mediation settlement must be enforced in another country.

For example, a Turkish manufacturer may have an unpaid receivable against a German distributor. A British investor may have a contractual dispute with a Turkish construction company. A Turkish logistics business may face a damage claim from a Polish exporter. A foreign software company may dispute licence fees with a Turkish customer.

All these disputes may potentially be resolved through international mediation.

Legal Basis for International Mediation in Turkey

The principal legislation is Law No. 6325 on Mediation in Civil Disputes.

Article 1 of Law No. 6325 provides that the law applies to private law disputes, including disputes containing a foreign element, where the parties may freely dispose of the relevant rights.

This rule means that international mediation may be used for a broad range of commercial matters, including:

• Sale of goods;
• Distribution agreements;
• Agency contracts;
• Construction projects;
• Technology and software licences;
• Logistics and transportation;
• Insurance;
• Banking and finance;
• Shareholder disputes;
• Franchise agreements;
• Consultancy services;
• Joint ventures;
• Commercial debt collection;
• Intellectual property licensing;
• Supply chain disputes.

The dispute must nevertheless be legally suitable for mediation. The parties must have authority to settle the subject matter. Matters concerning criminal liability, certain public-law obligations or rights outside the parties’ freedom of disposition cannot be resolved merely through a private mediation agreement.

What Is a Foreign Element?

A foreign element exists where the legal relationship has a relevant connection with another country.

The foreign element may arise from:

• Nationality of the parties;
• Foreign incorporation of a company;
• Place of business;
• Place of contract formation;
• Place of contractual performance;
• Place where damage occurred;
• Currency of payment;
• Governing law;
• Jurisdiction agreement;
• Arbitration clause;
• Location of property or assets.

A contract does not need to be written in a foreign language to contain a foreign element. Similarly, payment in euros or US dollars alone does not necessarily make every dispute international.

The entire legal and commercial relationship should be examined.

Determining whether a dispute is international may affect:

• Applicable law;
• Jurisdiction;
• Service of documents;
• Corporate representation;
• Language;
• Evidence;
• Enforcement;
• Application of international conventions.

Why Use Mediation for Cross-Border Commercial Disputes?

Cross-border disputes are often more complicated and expensive than domestic disputes.

The parties may face:

• Conflicting jurisdiction clauses;
• Different limitation periods;
• Foreign-language documents;
• Travel expenses;
• Translation costs;
• International expert evidence;
• Difficulty serving court documents;
• Enforcement proceedings in another country;
• Currency fluctuations;
• Damage to an ongoing business relationship.

Mediation may allow the parties to avoid or reduce these problems.

Confidentiality

Commercial disputes may involve trade secrets, pricing policies, customer information, technical data, financial difficulties or allegations of defective performance.

Mediation is confidential under the Turkish legal framework. This enables parties to discuss settlement options without exposing sensitive information in public court proceedings. Turkish mediation rules and ethical standards recognise confidentiality as a central feature of the process.

Procedural Flexibility

The parties may agree on:

• Language of the mediation;
• Place of meetings;
• Online participation;
• Timetable;
• Documents to exchange;
• Use of experts;
• Joint or separate meetings;
• Applicable procedural rules.

Commercial Solutions

A court usually decides the legal claims submitted to it. Mediation may produce broader solutions.

The parties may agree on:

• Payment by instalments;
• Reduced interest;
• Replacement goods;
• Additional deliveries;
• Renewal of a distribution agreement;
• Revised prices;
• Extension of contractual deadlines;
• Return of products;
• Transfer of licences;
• Future commercial cooperation.

Preservation of Business Relations

A foreign supplier and Turkish distributor may wish to continue working together even though they disagree about one shipment or invoice.

Mediation can separate the current dispute from the future commercial relationship.

Faster Resolution

A cross-border lawsuit or arbitration may continue for years. Mediation may produce a settlement within days or weeks.

Control Over the Outcome

No mediator can impose a settlement. The parties sign only if the proposed terms are acceptable.

Voluntary and Mandatory International Mediation

International mediation in Turkey may be voluntary or mandatory.

Voluntary International Mediation

Voluntary mediation begins because the parties agree to negotiate with a mediator.

The process may start:

• Before litigation;
• During pending litigation;
• Before arbitration;
• During arbitration;
• Following enforcement proceedings;
• Under a contractual mediation clause;
• Following a direct settlement invitation.

The parties may jointly choose the mediator and design the procedure.

Voluntary mediation is particularly suitable where neither party wishes to submit immediately to the jurisdiction of the other party’s national courts.

Mandatory Commercial Mediation

Foreign companies should be aware that Turkish law requires mandatory mediation before certain commercial lawsuits are filed in Turkey.

Article 5/A of the Turkish Commercial Code requires mediation before covered commercial actions involving payment of money, compensation, annulment of objection, negative declaratory relief and restitution.

Therefore, a foreign company seeking to recover an unpaid commercial receivable through a Turkish commercial court may need to complete mandatory mediation before litigation.

The Turkish mandatory mediation requirement is procedural. It applies because the intended lawsuit will be brought before a Turkish court, even though one party is foreign.

The parties are not required to settle. If no agreement is reached, the mediator prepares a final report and the claimant may proceed to court.

Official Ministry of Justice materials confirm that commercial mandatory mediation applies to commercial monetary disputes and that Turkish mediation law also covers disputes containing a foreign element.

Does Mediation Apply Before Arbitration?

The answer depends on the contract and circumstances.

A contract may contain:

• Direct arbitration clause;
• Negotiation clause;
• Mediation clause;
• Multi-tier dispute resolution clause;
• Mediation followed by arbitration clause.

A multi-tier clause may require the parties to negotiate or mediate before commencing arbitration.

For example, the contract may state that:

1. Senior managers will negotiate for 30 days;
2. The parties will attempt mediation;
3. If mediation fails, the dispute will be submitted to arbitration.

The legal consequences of failing to comply with such a clause depend on its wording, governing law and applicable arbitration rules.

Parties should not assume that a broadly drafted obligation to “attempt amicable settlement” always prevents immediate arbitration. Conversely, a clearly mandatory mediation step should not be ignored.

Choosing the Mediator

In voluntary international mediation, the parties may generally choose a mediator registered under the applicable system.

The parties should consider:

• Commercial mediation experience;
• Knowledge of the relevant sector;
• Language skills;
• Understanding of international transactions;
• Familiarity with Turkish law;
• Availability;
• Ability to conduct online sessions;
• Experience with foreign parties;
• Neutrality and independence.

A technology licensing dispute may require a mediator familiar with software and intellectual property. A construction dispute may benefit from experience in engineering, project delays and variation claims. A logistics dispute may require knowledge of carriage, customs and international trade documents.

The Turkish Ministry of Justice maintains a system of registered mediators and specialist areas. Official materials recognise specialist mediation in commercial and other technically complex fields.

Neutrality and Independence

In cross-border disputes, parties may be concerned that the mediator will favour the local company.

The mediator must act independently and impartially.

The mediator should disclose circumstances that may create a reasonable concern regarding impartiality, such as:

• Previous professional relationship with a party;
• Financial interest;
• Close personal connection;
• Prior involvement in the dispute;
• Relationship with counsel.

The parties may agree to continue after disclosure, depending on the circumstances and applicable rules.

A mediator is not the lawyer of either party. Foreign companies should retain independent Turkish legal counsel where legal representation is required.

Language of the Mediation

The parties may agree on the language or languages used in mediation.

International mediation in Turkey may be conducted in:

• Turkish;
• English;
• Another foreign language;
• More than one language;
• With an interpreter.

The parties should decide:

• Language of oral meetings;
• Language of documents;
• Language of settlement drafts;
• Whether translations are required;
• Which version will prevail.

Where a party does not understand Turkish, signing only a Turkish document without a reliable translation creates substantial legal risk.

A bilingual settlement should specify whether:

• Both versions have equal authority;
• Turkish prevails;
• The foreign-language version prevails;
• A particular translation rule applies.

Online International Mediation

Online mediation is especially useful in cross-border commercial disputes.

The parties may participate from different countries without travel.

Online meetings may be held through secure video conference. The parties may exchange documents electronically and sign the settlement through legally appropriate methods.

Online international mediation may reduce:

• Travel costs;
• Accommodation expenses;
• Scheduling difficulties;
• Delays caused by visas;
• Time away from business operations.

However, the parties should address:

• Identity verification;
• Confidentiality;
• Data security;
• Recording prohibition;
• Secure document sharing;
• Time-zone differences;
• Electronic signatures;
• Authority of participants;
• Technical interruptions.

Each participant should join from a private environment. Unauthorised persons should not be present.

Representation of Foreign Companies

A foreign company may participate personally through an authorised representative or through a Turkish lawyer.

Before the mediation, the company should provide evidence of:

• Legal existence;
• Registered company name;
• Registered address;
• Directors or authorised officers;
• Authority to appoint a lawyer;
• Authority to settle;
• Authority to sign the agreement.

Relevant documents may include:

• Certificate of incorporation;
• Trade registry extract;
• Articles of association;
• Board resolution;
• Signature certificate;
• Power of attorney.

Foreign documents may require:

• Notarisation;
• Apostille;
• Consular legalisation;
• Sworn Turkish translation.

The exact requirements depend on the country where the document was issued and the intended use in Turkey.

Power of Attorney

A foreign party represented by a Turkish lawyer should issue a power of attorney containing appropriate authority.

The power may need to cover:

• Applying to mediation;
• Participating in meetings;
• Negotiating;
• Settling;
• Accepting or acknowledging debt;
• Releasing claims;
• Waiving rights;
• Signing the final report;
• Signing the settlement agreement;
• Obtaining an enforceability annotation;
• Starting enforcement proceedings.

A general litigation power may not always provide sufficient express authority for every settlement-related act.

The document should be reviewed before the first meeting.

Applicable Law in Cross-Border Mediation

Mediation procedure and the substantive law governing the dispute are separate issues.

The parties may conduct the mediation in Turkey even if the underlying contract is governed by foreign law.

The agreement may need to consider:

• Contractual choice-of-law clause;
• Turkish conflict-of-law rules;
• Mandatory Turkish legislation;
• International conventions;
• Public policy;
• Place of performance;
• Location of assets.

For example, an international sale contract may be governed by Turkish law, German law or the United Nations Convention on Contracts for the International Sale of Goods, depending on the agreement and circumstances.

The mediator does not determine the applicable law as a judge would. Each party’s lawyer should analyse the legal position before negotiation.

Jurisdiction and Arbitration Clauses

A mediation settlement should not ignore the existing dispute resolution clause.

The underlying contract may designate:

• Turkish courts;
• Foreign courts;
• Institutional arbitration;
• Ad hoc arbitration;
• A particular seat of arbitration;
• A specific governing law.

During mediation, the parties may agree to:

• Preserve the original clause;
• Amend it;
• Replace it;
• Create a new dispute resolution mechanism for the settlement.

The settlement should state which court or tribunal will have jurisdiction over disputes concerning:

• Interpretation of the settlement;
• Validity;
• Performance;
• Default;
• Enforcement.

Poor drafting may result in a second jurisdictional dispute.

Preparing for International Commercial Mediation

A party should prepare a clear factual and legal case before negotiations.

Relevant documents may include:

• Main contract;
• Amendments;
• Purchase orders;
• Invoices;
• Bills of lading;
• Delivery records;
• Customs documents;
• Bank transfers;
• Letters of credit;
• Insurance policies;
• Guarantees;
• Emails;
• Technical reports;
• Inspection certificates;
• Notices of default;
• Arbitration clause;
• Court documents;
• Enforcement records.

The party should also prepare:

• Chronology;
• Claim calculation;
• Interest calculation;
• Currency analysis;
• Litigation or arbitration risk;
• Enforcement risk;
• Settlement range;
• Proposed payment schedule;
• Security requirements.

International Sale of Goods Disputes

International sale disputes may arise from:

• Non-delivery;
• Late delivery;
• Defective goods;
• Incorrect quantity;
• Rejection of goods;
• Non-payment;
• Customs problems;
• Transport damage;
• Product specifications;
• Warranty claims;
• Currency differences.

Mediation may result in:

• Replacement shipment;
• Partial refund;
• Price reduction;
• Future purchase commitment;
• Repair;
• Return of goods;
• New delivery schedule;
• Revised payment terms.

The settlement should regulate transportation, customs, insurance and risk of loss.

Distribution and Agency Disputes

Foreign manufacturers often appoint Turkish distributors or agents.

Disputes may involve:

• Unpaid invoices;
• Sales targets;
• Exclusivity;
• Territory;
• Commission;
• Customer ownership;
• Termination;
• Stock repurchase;
• Trademark use;
• Post-termination compensation.

Mediation may preserve the relationship or establish an orderly termination.

A settlement may include:

• Final commission payment;
• Purchase of remaining stock;
• Return of marketing materials;
• Removal of trademarks;
• Transfer of customer data;
• Confidentiality;
• Non-solicitation;
• New distribution conditions.

Construction and Infrastructure Disputes

Cross-border construction disputes may involve foreign contractors, investors, suppliers, engineers and consultants.

Common issues include:

• Delay;
• Variation orders;
• Defective work;
• Payment certificates;
• Retention;
• Performance guarantees;
• Extension of time;
• Liquidated damages;
• Subcontractor claims;
• Project termination.

Mediation may allow the project to continue while the parties resolve financial claims.

The parties may agree on:

• Revised completion date;
• Partial payment;
• Release of retention;
• Completion plan;
• New technical inspection;
• Reduction of penalties;
• Replacement contractor;
• Guarantee arrangements.

Technology and Intellectual Property Disputes

International technology disputes may concern:

• Software development;
• Licensing;
• Source code;
• Data access;
• Cloud services;
• Cybersecurity;
• Trademarks;
• Patents;
• Copyright;
• Royalties;
• Confidential information.

Mediation is valuable because it protects technical and commercial confidentiality.

A settlement may regulate:

• Continued licence;
• Limited use;
• Removal of software;
• Data transfer;
• Source-code escrow;
• Royalty payment;
• New service levels;
• Confidentiality;
• Destruction of protected material.

Cross-Border Debt Collection

A foreign creditor may use mediation to collect a debt from a Turkish company.

The creditor should investigate:

• Debtor’s exact registered name;
• Trade registry status;
• Assets;
• Existing enforcement proceedings;
• Guarantees;
• Insolvency risk;
• Limitation periods;
• Contractual jurisdiction clause.

The creditor may combine mediation with:

• Payment notice;
• Turkish enforcement proceedings;
• Interim attachment;
• Commercial lawsuit;
• Arbitration;
• Enforcement of foreign judgment or award.

A settlement may provide for:

• Immediate partial payment;
• Instalments;
• Bank guarantee;
• Personal or corporate guarantee;
• Pledge;
• Mortgage;
• Assignment of receivables;
• Retention of title.

A foreign creditor should not accept an unsecured instalment promise without considering collection risk.

Currency and Exchange-Rate Issues

International settlements frequently involve foreign currency.

The agreement should specify:

• Currency of debt;
• Currency of payment;
• Exchange-rate source;
• Exchange-rate date;
• Bank transfer fees;
• Correspondent bank charges;
• Withholding;
• Late-payment interest;
• Consequences of currency restrictions.

Expressions such as “payment at the current exchange rate” may be too vague.

The parties should identify whether the settlement changes the original currency obligation or merely regulates payment.

Tax and Regulatory Considerations

A cross-border settlement may have tax consequences.

Possible issues include:

• Withholding tax;
• Value-added tax;
• Corporate income tax;
• Stamp tax;
• Customs duties;
• Transfer pricing;
• Bank reporting;
• Foreign-exchange rules.

The mediator does not provide tax advice to one party.

The parties should obtain accounting or tax advice before signing a high-value international settlement.

The agreement should state whether amounts are:

• Gross;
• Net;
• Tax-inclusive;
• Tax-exclusive;
• Subject to withholding.

Confidentiality and Data Protection

International mediation may involve personal data, financial records, customer lists and technical information.

The parties should consider:

• Turkish data protection rules;
• Foreign data protection laws;
• Cross-border data transfer;
• Secure storage;
• Access permissions;
• Destruction or return of documents.

An additional confidentiality agreement may define:

• Persons permitted to receive information;
• Use of information;
• Duration;
• Exceptions required by law;
• Remedies for breach.

Drafting an International Mediation Settlement

A cross-border mediation settlement should be detailed, clear and enforceable.

It should include:

• Full legal names of the parties;
• Countries of incorporation;
• Registered addresses;
• Registration numbers;
• Authority of signatories;
• Background of the dispute;
• Claims covered;
• Payment obligations;
• Currency;
• Due dates;
• Bank account;
• Taxes;
• Bank charges;
• Delivery obligations;
• Security;
• Default;
• Confidentiality;
• Governing law;
• Jurisdiction or arbitration;
• Language;
• Enforcement;
• Scope of release.

The agreement should not merely state that the parties have “amicably resolved all disputes.”

Conditional Releases

Where payment will be made later, the creditor should consider a conditional release.

The agreement may provide that the release becomes effective only after:

• Full payment;
• Timely completion of instalments;
• Delivery of goods;
• Transfer of required documents;
• Release of security.

An immediate and unconditional release may prevent the creditor from pursuing the original claim even if the debtor later defaults.

Default Clauses

The agreement should define the consequences of non-performance.

Possible terms include:

• Default interest;
• Acceleration of remaining instalments;
• Loss of settlement discount;
• Enforcement costs;
• Revival of specified claims, where legally valid;
• Enforcement of security;
• Jurisdiction for default disputes.

The wording must be compatible with applicable law.

Enforceability Under Turkish Law

A valid mediation settlement may become enforceable under Law No. 6325.

The parties may apply to the competent Turkish court for an enforceability annotation. The court examines whether the dispute is suitable for mediation and whether the obligations are capable of compulsory enforcement.

Where the statutory signature requirements are satisfied, a settlement signed by the parties, their lawyers and the mediator may generally qualify as a judgment-equivalent document without a separate annotation, subject to statutory exceptions.

The agreement must still be precise.

Enforceability does not correct:

• Incorrect company name;
• Lack of authority;
• Uncertain payment date;
• Unclear currency;
• Invalid security;
• Illegal obligation;
• Excessively vague performance terms.

What Is the Singapore Convention on Mediation?

The Singapore Convention is a United Nations treaty concerning international settlement agreements resulting from mediation.

Its purpose is to provide a framework under which qualifying international commercial mediation settlements may be relied upon and enforced in Convention states without requiring the claimant first to obtain a court judgment on the underlying settlement contract.

Turkey ratified the Singapore Convention in 2021 and became one of its state parties.

The Convention is often compared conceptually with the New York Convention for arbitral awards, although the legal instruments and requirements are different.

Which Settlements May Fall Within the Singapore Convention?

The Convention generally concerns written settlement agreements that:

• Result from mediation;
• Resolve a commercial dispute;
• Are international at the time they are concluded.

A settlement may be international where the parties have places of business in different states or where the place of performance or the subject matter is connected with another state.

The Convention does not apply to every mediated settlement.

Excluded or restricted categories include certain settlements involving:

• Consumer transactions for personal, family or household purposes;
• Family law;
• Inheritance;
• Employment;
• Settlements approved by a court or enforceable as a judgment;
• Settlements recorded as arbitral awards.

The applicability of the Convention must be assessed individually.

Proof That the Settlement Resulted From Mediation

A party relying on the Singapore Convention must provide evidence that the agreement resulted from mediation.

This may include:

• Mediator’s signature;
• Document signed by the mediator;
• Attestation by the mediation institution;
• Other acceptable evidence.

Therefore, the final documentation should clearly identify the process as mediation.

Grounds for Refusing Enforcement Under the Convention

Enforcement may be refused on limited grounds.

Potential grounds include:

• Incapacity of a party;
• Invalidity of the settlement;
• Settlement not being binding or final;
• Obligation already performed;
• Obligation being unclear;
• Serious breach by the mediator;
• Failure to disclose circumstances affecting impartiality;
• Public policy;
• Subject matter not capable of settlement by mediation.

The Convention does not make an invalid or vague settlement enforceable.

Turkey as the Enforcement State

Where enforcement is sought in Turkey, the party must consider both the Convention and Turkish procedural rules.

The applicant may need to provide:

• Original settlement or certified copy;
• Evidence of mediation;
• Turkish translation;
• Corporate authority documents;
• Proof of default;
• Other documents required by the competent authority.

The Turkish court or enforcement authority may consider whether the Convention applies and whether a refusal ground exists.

Enforcement Outside Turkey

A Turkish mediation settlement may potentially be enforced in another Convention state if it satisfies the Convention’s requirements.

Before relying on the Convention, the creditor should verify:

• Whether the destination country is a party;
• Whether the Convention is in force there;
• Whether reservations apply;
• Which authority is competent;
• Required language and translation;
• Local procedural requirements;
• Location of debtor assets.

International enforcement strategy should be planned before the settlement is signed.

Mediation Settlement or Consent Arbitral Award?

Where arbitration is already pending, parties sometimes consider requesting an arbitral tribunal to record the settlement as a consent award.

A consent award may be enforceable under the New York Convention, depending on the applicable law and rules.

A separate mediation settlement may instead fall within the Singapore Convention.

The appropriate structure depends on:

• Stage of arbitration;
• Location of assets;
• Convention membership;
• Cost;
• Confidentiality;
• Enforceability;
• Tribunal authority.

The parties should not automatically choose one method without comparing enforcement routes.

Common Mistakes in International Mediation

Failing to Verify Corporate Identity

A trade name may differ from the legal company name.

Lack of Settlement Authority

The representative may not have board or shareholder approval.

Unclear Governing Law

The settlement may create a new conflict-of-law dispute.

No Controlling Language

Different language versions may contain inconsistent obligations.

Vague Currency Provision

The parties may disagree about the exchange rate.

Failure to Address Taxes

The net amount received may be lower than expected.

Unsecured Instalments

The debtor may default after obtaining a release.

Broad Release

Unrelated claims may be waived.

Ignoring Existing Arbitration

The settlement may conflict with pending proceedings.

No Enforcement Planning

The agreement may be signed without considering where the debtor’s assets are located.

The Role of a Turkish International Mediation Lawyer

A Turkish international mediation lawyer may assist by:

• Determining whether Turkish mandatory mediation applies;
• Reviewing jurisdiction and arbitration clauses;
• Analysing applicable law;
• Identifying the correct foreign or Turkish company;
• Preparing powers of attorney;
• Coordinating apostille and translation;
• Calculating commercial claims;
• Developing negotiation strategy;
• Drafting bilingual agreements;
• Obtaining security;
• Planning Turkish enforcement;
• Evaluating the Singapore Convention;
• Coordinating foreign enforcement counsel.

Legal support is particularly important where the settlement involves substantial foreign-currency payments, multiple companies, cross-border guarantees or enforcement in more than one state.

Frequently Asked Questions

Can foreign companies use mediation in Turkey?

Yes. Law No. 6325 expressly covers eligible private law disputes containing a foreign element.

Is mediation mandatory for a foreign company before suing in Turkey?

It may be mandatory where the intended Turkish lawsuit falls within a statutory mandatory mediation category, such as a covered commercial monetary claim.

Can the mediation be conducted in English?

Yes. The parties may agree on English or another language and may use an interpreter.

Can foreign parties participate online?

Yes. Online participation may be arranged where identity, confidentiality and effective communication are protected.

Does the mediator decide which country’s law applies?

No. The mediator facilitates settlement. Each party should obtain independent legal advice on applicable law.

Can a foreign company participate through a Turkish lawyer?

Yes. The lawyer must hold an appropriately prepared power of attorney.

Is a Turkish mediation settlement enforceable?

A valid agreement may become enforceable under Law No. 6325 through the applicable signature structure or an enforceability annotation.

Is Turkey a party to the Singapore Convention?

Yes. Turkey ratified the Convention in 2021.

Does the Singapore Convention cover employment or consumer settlements?

The Convention contains exclusions, including specified consumer, family, inheritance and employment matters. Each settlement must be analysed separately.

Can a Turkish settlement be enforced abroad?

Potentially, depending on the law and treaty status of the country where enforcement is sought.

Conclusion

International mediation in Turkey provides foreign and Turkish companies with a flexible, confidential and commercially focused method of resolving cross-border disputes.

Turkish mediation legislation expressly applies to private law disputes containing a foreign element where the parties may freely dispose of the subject matter. International mediation may therefore be used for commercial debt, sale of goods, distribution, construction, logistics, technology, licensing, insurance, shareholder and investment-related contractual disputes.

The process may be voluntary or mandatory. A foreign company seeking to file a covered commercial lawsuit before a Turkish court may be required to complete mandatory commercial mediation first.

International mediation allows the parties to choose:

• Mediator;
• Language;
• Meeting format;
• Timetable;
• Experts;
• Settlement structure.

It may also offer solutions unavailable through ordinary litigation, including debt restructuring, replacement performance, revised delivery schedules, continuation of business relationships and cross-border security.

However, international settlements require careful drafting.

The agreement should clearly regulate:

• Identity and authority of the parties;
• Claims covered;
• Applicable law;
• Payment amount;
• Currency;
• Exchange rate;
• Taxes;
• Bank charges;
• Instalments;
• Security;
• Default;
• Confidentiality;
• Controlling language;
• Jurisdiction or arbitration;
• Enforcement.

Turkey’s participation in the Singapore Convention strengthens the international framework for enforcement of qualifying commercial mediation settlements. Nevertheless, the Convention does not automatically validate every agreement. The settlement must satisfy the relevant requirements, and enforcement may be refused on specified grounds.

The location of the debtor’s assets should be considered before the agreement is signed. In some cases, direct Turkish enforceability may be sufficient. In others, the parties may need to plan enforcement under the Singapore Convention, domestic foreign law or an arbitral consent award.

An experienced Turkish international mediation lawyer can coordinate Turkish law, foreign corporate authority, bilingual drafting, cross-border payment, security and enforcement strategy.

Disclaimer: This article is provided for general informational purposes only and does not constitute legal advice. Turkish mediation, commercial, private international law, tax and enforcement rules may change. The Singapore Convention’s applicability also depends on the parties, subject matter, relevant states and specific settlement terms. Each cross-border dispute should be evaluated according to its individual facts and the legislation in force on the relevant date.