India and Iran have agreed not to seek commercial foreign arbitration for disputes between users and operators at Chabahar Port, paving the way for the two sides to sign a long-term deal for the development of the strategic portt.

• Negotiations on long-term contract had been held up due to disagreements over the arbitration clause.
• Both sides have now agreed to pursue arbitration under rules framed by the UN Commission on International Trade Law (UNCITRAL) which is favoured by India over those framed by the International Chambers of Commerce (ICC).
• Both arbitration routes do not have designated courts in specific jurisdictions. India had earlier suggested arbitration matters be taken up either in Dubai or Mumbai. The ministry of ports, shipping and waterways did not respond to a query sent on the issue till press time.
• The positive development comes at a time when China has been showing growing interest in investments in ports and other coastal infrastructure in Iran, and the Iranian side has been pressing New Delhi to step up development of Shahid Beheshti terminal, which is operated by the state-run India Ports Global Limited (IPGL).