Australia India Business Council (AIBC) and Indian Council of Arbitration (ICA) sign MOU to facilitate trade arbitration in growing bilateral business to business engagements

As the bilateral trade between Australia and India currently exceeding $50Billion and will be growing significantly in coming years due to Economic Cooperation and Trade Agreement ( ECTA), both countries are reforming the arbitration regime.

While Australia recognises the importance of arbitration in encouraging cross border trade and there is a clear legislative framework supporting arbitration (both domestic and international) by the Australian Courts, India has also reformed its Arbitration Acts. The proposed establishment of the New Delhi International Arbitration Centre both demonstrates India’s commitment to arbitration.

In view of the increased need of Arbitration provisions in bilateral engagements, AIBC organised an industry roundtable and a panel discussion on “Arbitration in Indo-Australia Trade Relations: Encouraging Investor Confidence,” held at the Strangers’ Function Room, NSW Parliament House Sydney on Thursday, 7 November 2024.

The event held in partnership with the ICA and AIBC National Corporate Member, DLA Piper highlighted the importance of investor confidence for the business and legal communities from both countries, especially after the signing of the ECTA bilateral trade agreement between the two countries.

Mr Irfan Malik, National Associate Chair and AIBC NSW President welcomed the invited guests, speakers and stated that AIBC is taking proactive steps to facilitate increased business to business engagements in line with the regulatory regimes and commercial frameworks of both Australia and India.

Notable speakers representing the Indian Council of Arbitration (ICA) at the roundtable and a panel discussion included Mr Arun Chawla, Director General ICA; Mr N.G. Khaitan, President ICA, Ms Pinky Anand, Senior Advocate, Supreme Court of India & Former Additional Solicitor General of India, Deborah Lockhart, Chief Executive Officer, Diana Bowman, Secretary General Australian Centre for International Commercial Arbitration (ACICA). The very interesting and lively panel discussions on some of the challenges in bilateral arbitration frameworks and identifying short term and long-term pathways was very well moderated by Gitanjali Bajaj , Partner of DLA .

An interesting interactive Q&A engagement with the invited business and legal service professionals brought out some useful suggestions like development of model contract including dispute resolution/ arbitration clauses and mechanisms, sharing knowledge on key issues etc.

To move forward the facilitation process in bilateral arbitration , AIBC and ICA signed a Memorandum of Understanding ( MOU). The Key aspects of the MOU are:

  • Collaboration in in establishing or enhancing a shared platform to facilitate knowledge exchange and joint initiatives. This partnership aims to advance areas of mutual interest, including bilateral trade, investment, and the support of international legal arbitration.
  • Exchange information on the latest developments in their respective areas that is of common interest to both the organisation.
  • Collaboration on Joint programs and activities to support market literacy & awareness initiatives across Australia and India potentially working with specific industry partner organisations
  • Promote joint awareness raising activities to promote this collaboration amongst respective members and networks.

The above MOU highlights AIBC’s continued leadership in enabling secure, effective trade frameworks that benefit Australian and Indian businesses, strengthening bilateral economic relations. As AIBC paves the way for an even stronger Australia-India trade corridor, our commitment to enhancing trade certainty, security, and growth remains a core driver on behalf of our members.

In summary, the AIBC event achieved the following outcomes.

Better understanding the importance of Arbitration provisions in bilateral commercial agreements

  • Better understanding of legislative/legal frameworks in Australia and India
  • Identifying pathways to some practical challenges in cross border arbitration
  • Agreement to develop Model contracts for small, medium, large enterprises
  • Facilitate knowledge sharing through continued interactions with Arbitration bodies and professionals from both countries
  • Create a pool of Arbitration specialists

About the AIBC

The Australia India Business Council (AIBC) is the leading business chamber dedicated to promoting the bilateral trade and investment relationship between Australia and India.

AIBC was established in 1986 by the then governments of Australia and India. It now has chapters in six Australian state capitals and a presence in India.

AIBC helps to shape policy and advocacy for promoting the bilateral business corridor, raising awareness about Australia-India trade and investment and facilitating business to business outcomes.

AIBC works closely with the federal and state governments in Australia and India, as well as with industry bodies, the diaspora, academia, and the community and media.

As a membership-driven, not-for-profit organisation, AIBC’s members and partners include some of the most respected names in business, industry and academia.

Contact: secretariat@aibc.org.au | 1300 176 684

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