India Seeks WTO Arbitration Against Australia Over Services Sector Dispute

India has initiated arbitration proceedings under WTO rules against Australia's intended changes to its commitments under the General Agreement on Trade in Services. The Indian government argues this move could negatively impact its trade in services. Multiple nations have agreed on additional obligations to ease non-goods trade under GATS.

India has launched arbitration proceedings under World Trade Organization (WTO) rules to address a dispute with Australia over services sector commitments, according to an official statement. The conflict arises from Australia's intent to modify its specific commitments under the General Agreement on Trade in Services (GATS), which India contends could harm its trade in services.

India has informed the WTO about its arbitration request, citing Australia's failure to meet specific conditions. Despite extended negotiations until April 2024, no agreement was reached, prompting India to seek arbitration proceedings formally. Over 70 WTO nations recently agreed to make additional obligations under GATS to facilitate non-goods trade.

This resolution aims to reduce service trade costs significantly, potentially saving lower-middle-income economies 10% and upper-middle-income economies 14%, totaling an estimated USD 127 billion. The arbitration will determine the precise impact on India's trade interests.

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