Developing Nations Oppose Inclusion of Arbitration in UN Treaty

Developed and developing countries were divided Tuesday on whether a new United Nations tax treaty should include arbitration as a potential tool to resolve tax disputes.

Nigeria, speaking on behalf of Africa’s 54 countries, as well as Russia and India, opposed a proposal from the treaty’s lead negotiators during a meeting in Nairobi, Kenya, that arbitration be included in the treaty alongside mediation and conciliation as possible resolution methods.

Many trade agreements and tax treaties include binding arbitration as a dispute resolution tool. Arbitration allows private entities to challenge government policies in front of specialized panels.

Developing nations, however, have ...