India requests for arbitration with Australia under WTO rules on services trade issue

India has sought arbitration proceedings under the WTO rules against Australia to resolve an issue with regard to services sector, as it could impact New Delhi’s trade in services, an official said.

The official said India has already communicated to the World Trade Organization (WTO) regarding its request for arbitration on the issue. On November 17, 2023, Australia notified to the secretariat of the WTO about its intention to modify its schedule of specific commitments under the GATS (General Agreement on Trade in Services) to incorporate additional commitments relating to services domestic regulation.

GATS is a WTO agreement that came into force in 1995. India is a member of the Geneva-based organization since 1995. WTO is a global trade watchdog and adjudicates trade disputes among member nations. As an "affected member", India has stated that Australia’s intended modification of its specific commitments does not satisfy certain conditions, the official said.

"Thereafter… India and Australia entered into negotiations with a view to reaching an agreement. The period to conclude these negotiations was extended by mutual agreement until 19 April, 2024. However, no agreement could be reached. India, hereby, requests arbitration proceedings with Australia," the official said. In February in Abu Dhabi, Over 70 WTO nations agree to take 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 members of the WTO.