Businesses cannot eliminate geopolitical uncertainty through contracts: AAA-ICDR’s Thara Gopalan

Why Geopolitics Is Reshaping India-US Disputes

Thara Gopalan, vice president at the American Arbitration Association's International Centre for Dispute Resolution (AAA-ICDR), has outlined how geopolitical uncertainty is changing the character of commercial disputes between Indian and US businesses. In an interview with ETLegalWorld, she explained that cross-border tensions are increasingly shaping how disagreements arise and how parties choose to resolve them. Her comments come amid a broader debate over whether contracts alone can shield businesses from political and regulatory shocks.

A central point in the discussion is that no contract can fully remove geopolitical risk. Businesses cannot eliminate uncertainty through drafting alone, though the quality of dispute resolution clauses still matters greatly. Gopalan stressed the importance of structuring arbitration clauses carefully so they account for cross-border risks that may surface during a dispute. For Indian companies with US counterparties, the choice of forum, governing law and procedural rules can determine how costly and time-consuming a conflict becomes.

Why This Matters For Businesses

The India-US commercial corridor carries significant trade and investment flows, and disputes along it often involve multiple jurisdictions, differing legal traditions and enforcement questions. As geopolitical factors intrude, parties may find themselves dealing with delays, asset freezes or political sensitivities that a standard boilerplate clause does not anticipate. Gopalan's remarks suggest that early dispute assessment and mediation can help businesses resolve matters before they escalate into full arbitration. Procedural flexibility is also framed as a way to make cross-border resolution more efficient, allowing parties to tailor timelines and processes rather than follow a rigid template.

Artificial intelligence features in the conversation as well, both as a source of new commercial disputes and as a tool …