Dispute resolution: China-led IOMed comes into being

On May 30, 2025, the international legal landscape experienced a quiet yet potentially transformative shift. The International Organization for Mediation (IOMed) was officially established through a signing ceremony held in Hong Kong, with representatives from 85 nations across Asia, Africa, Latin America and Europe participating in the event. During this ceremony, 33 countries, including Pakistan, signed the convention, thereby becoming founding signatory members. This insight examines the workings and objectives of IOMed to evaluate its geopolitical importance and the implications of this new forum for countries such as Pakistan.

IOMed is the first intergovernmental organisation exclusively dedicated to the resolution of disputes through mediation. Currently, it concentrates on the peaceful resolution of three categories of disputes: state-to-state disputes; disputes between states and foreign investors; and commercial disagreements among and between parties. IOMed operates on principles such as respect for state sovereignty, equality, impartiality, non-interference in internal affairs, the rule of law and effectiveness.

Its procedural process begins with the voluntary consent of all disputing parties — usually states, corporations or individuals involved in transnational conflicts. Once the parties agree to refer their dispute to IOMed, mediators are selected from two specialised panels: the State-to-State Mediation Panel, which comprises experts in diplomacy and international law for intergovernmental disputes; and the General Mediation Panel, comprising professionals skilled in commercial, investor-state and mixed disputes. The parties, in consultation with the Secretariat, appoint one or more neutral mediators from these panels. If a settlement is reached through mediation, it is formalised and finalised. If the parties agree to its terms and decide to give it legal effect within their jurisdictions, it then becomes binding.

What truly distinguishes IOMed from other international dispute resolution organisations is its dedication to mediation as both a procedural and philosophical alternative to litigation and arbitration. Litigation, as practiced by institutions like the International Court of Justice (ICJ), is a formal judicial process that produces binding judgments through adjudication. Arbitration, employed by entities such as the Permanent Court of Arbitration (PCA), involves arbitrators and decisions that are legally binding and enforceable in court. Both methods are adversarial, often involve complex legal procedures and are firmly rooted in Western legal traditions.

Mediation, by contrast, operates on the principles of mutual consent, dialogue and non-binding outcomes. IOMed institutionalises this model at the intergovernmental level — an unprecedented move in global legal architecture. Instead of issuing enforceable verdicts, it helps facilitate negotiated settlements shaped by the parties themselves. This procedural difference reflects a more profound normative shift: IOMed's model values flexibility, cultural adaptation and voluntary resolution.

Moreover, the creation of IOMed indicates a larger structural shift. Unlike the ICJ and PCA, which are based in The Hague and aligned with Euro-American legal standards, IOMed is located in Hong Kong and influenced by an ethos of multipolarism. Its strength is in its accessibility to states — especially from the Global South — that have long viewed existing mechanisms as expensive, unequal or culturally distant.

The establishment of IOMed was led by China, representing a strategic move to strengthen the voice of the Global South within the international legal system. Its launch — occurring amid rising US-China tensions — highlights a larger goal of positioning China as a leader in a multipolar global order. Besides promoting dispute resolution, IOMed serves as a geopolitical tool for China to enhance its influence in global governance and support its interests in the Belt and Road Initiative (BRI).

Pakistan's foreign policy has long prioritised peaceful dispute resolution and international cooperation, making its role as a founding member of IOMed both logical and strategic. The organisation's core principles closely align with Pakistan's diplomatic stance, especially in multilateral settings.

IOMed offers a potential platform for resolving longstanding disputes with India, particularly over the Indus Waters Treaty and Jammu and Kashmir, where dialogue has been stalled due to India's resistance to formal negotiations. In such situations, a non-binding, voluntary and non-coercive forum like IOMed could serve as a valuable space for dialogue. That said, the effectiveness of IOMed in such matters ultimately depends on India's willingness to become a signatory to the convention.

Currently, IOMed remains in its early stages, with its institutional structures, credibility and global recognition still developing. Its influence is limited, as many major world powers have yet to sign the convention. Additionally, several countries involved in China-led initiatives, such as the Shanghai Cooperation Organisation (SCO) and BRICS, have not become signatories. Given its early stage, it is perhaps premature to make definitive judgments about its impact and significance. Ultimately, its relevance will depend on its capacity to mediate a high-profile case with neutrality and transparency. If IOMed can demonstrate impartiality, particularly in light of China's leadership, it may gain the credibility necessary to become a significant player in resolving international disputes.