Mediation is a voluntary, private process, by which parties seek to achieve settlement of a contractual dispute by negotiation, with the assistance of an independent third party. The settlement outcome may be recorded in writing as a contractual agreement between the parties.

Arbitration is likewise a private process, but it is a more formal process than mediation and its outcome - an Arbitration Award - is a legally binding document in its own right, which can be enforced like a court order.

Both mediation and arbitration offer flexibility to parties with contractual disagreements, to enable them to achieve resolution. In a cotton context, arbitration is generally favoured, and it is the established resolution procedure for the significant percentage of international trade conducted under the bylaws of the International Association Limited (ICA). Informal mediation may, however, on occasion, be preferred by contracting parties. Liverpool Cotton Services has the knowledge and trade expertise to be of assistance in this area.