§ 172.201.Policy

The conciliation subchapter opens with a statement of preference.

The state encourages conciliation for parties to an international commercial agreement or transaction that qualifies for arbitration or conciliation under this chapter.

Conciliation is a settlement process, not an adjudication. A conciliator helps the parties reach an amicable settlement; nobody decides the case.

The qualification is the same gateway as arbitration. The agreement must be international under Section 172.003 and commercial under Section 172.004.

The reason for the preference is commercial. Cross-border business relationships are expensive to build, and a process that preserves them is worth more to the parties than a won award.

Cost and time weigh the same way. An international arbitration can run for years across several countries; a conciliation can end in weeks.

The subchapter that follows makes the policy usable. It supplies appointment, procedure, confidentiality, tolling, termination and enforceability.

Enforceability is what distinguishes it from ordinary mediation. Section 172.211 gives a signed written conciliation agreement the force and effect of a final arbitration award.

Conciliation can also happen inside an arbitration. Section 172.117 lets a tribunal use conciliation with the parties’ agreement at any time.

The policy has practical force in the sections that follow. Tolling, confidentiality and enforceability each remove a reason a cautious party might decline to try conciliation.

It is a preference, not a requirement. Nothing in the subchapter compels a party to conciliate before arbitrating.