New Delhi: India has sought arbitration proceedings under WTO rules against Australia to resolve an issue regarding the services sector as it could impact New Delhi's services trade, an official said.
The official said India has already informed the World Trade Organization (WTO) regarding its request for arbitration on the issue.
On November 17, 2023, Australia notified the WTO Secretariat of its intention to revise its schedule of specific commitments under GATS (General Agreement on Trade in Services) to include additional commitments related to domestic regulated services. Did.
GATS is a WTO agreement that came into force in 1995. India has been a member of the Geneva-based organization since 1995.WTO is a global monitoring body and settles trade disputes between member countries.
As an "affected member", India has stated that the amendments required by Australia to its specific commitments do not meet certain conditions, the official said.
"Subsequently... India and Australia commenced negotiations with the aim of reaching an agreement. The period for concluding these negotiations was extended by mutual agreement till April 19, 2024. However, no agreement could be reached.India, thereby, requests arbitration proceedings with Australia,” the official said.
In Abu Dhabi in February, more than 70 WTO nations agreed to take on additional obligations under the General Agreement on Goods in Services (GATS) to ease non-goods trade among themselves and extend similar concessions to all other WTO members.
These obligations under their schedules in GATS seek to minimize unintended trade restrictive effects or measures related to licensing requirements and procedures, qualification requirements and procedures and technical standards.
This will also benefit Indian professional companies, who will now have an equal opportunity to access markets in these 70 countries, if they meet the standards.
According to estimates, the move will help reduce service trade costs by 10 percent for lower-middle income economies and 14 percent for upper-middle income economies, with total savings of US$127 billion.WTO disputes can be resolved through an arbitration process.
Another official said the arbitrator will decide how much impact it will have on India.
The official said India has already informed the World Trade Organization (WTO) regarding its request for arbitration on the issue.
On November 17, 2023, Australia notified the WTO Secretariat of its intention to revise its schedule of specific commitments under GATS (General Agreement on Trade in Services) to include additional commitments related to domestic regulated services. Did.
GATS is a WTO agreement that came into force in 1995. India has been a member of the Geneva-based organization since 1995.WTO is a global monitoring body and settles trade disputes between member countries.
As an "affected member", India has stated that the amendments required by Australia to its specific commitments do not meet certain conditions, the official said.
"Subsequently... India and Australia commenced negotiations with the aim of reaching an agreement. The period for concluding these negotiations was extended by mutual agreement till April 19, 2024. However, no agreement could be reached.India, thereby, requests arbitration proceedings with Australia,” the official said.
In Abu Dhabi in February, more than 70 WTO nations agreed to take on additional obligations under the General Agreement on Goods in Services (GATS) to ease non-goods trade among themselves and extend similar concessions to all other WTO members.
These obligations under their schedules in GATS seek to minimize unintended trade restrictive effects or measures related to licensing requirements and procedures, qualification requirements and procedures and technical standards.
This will also benefit Indian professional companies, who will now have an equal opportunity to access markets in these 70 countries, if they meet the standards.
According to estimates, the move will help reduce service trade costs by 10 percent for lower-middle income economies and 14 percent for upper-middle income economies, with total savings of US$127 billion.WTO disputes can be resolved through an arbitration process.
Another official said the arbitrator will decide how much impact it will have on India.
