'Improved legal standards needed to deal with trade disputes'

NEW DELHI: India today pitched for better legal standards and trade laws in resolving disputes involving commercial entities engaged in global commerce, saying such a step would create new opportunities in boosting trade.

Sujata Mehta, Secretary (West) in the Ministry of External Affairs said States, at times, get involved in cross border trade disputes either because of their far-reaching policy implications or due to provisions in trade treaties, and there was a need to focus on improving legal standards in dealing with such issues.

"The ever growing number of cross border disputes between commercial entities also draws States into these, sometimes on account of their far-reaching policy implications, in other cases on account of high values and yet others because of treaty provisions.

"All these instances serve to draw attention to the larger implications of trade law. It is a fact that better and improved legal standards can themselves lead to identifying and creating new opportunities," she said.

Mehta was speaking at a conference on 50 years of United Nations Commission on International Trade Law ( UNCITRAL). It was set up in 1966 to promote the progressive harmonisation and unification of international trade law.

The senior diplomat also talked about various steps like lowering cost of credit and helping businesses to restructure and recover in boosting trade globally.

"The importance and relevance of international trade law in today's globalised environment, continues to grow. The challenges we face in this field require considered deliberation, and preferred outcomes are those that emerge from collective thinking and the best platform for the purpose is clearly the UNCITRAL," she said.