EU may take India to WTO again; seeks cut on levies on wines

Priyanka Tikoo

Brussels, Oct 15 (PTI) The European Union has warned that
it will drag India to the World Trade Organisation if New
Delhi does not slash taxes on wines and spirits imported from
Europe.

"We are trying to negotiate with India on the wines and
spirit issue... We won't mind going to the WTO again,"
spokesperson for the EU Agriculture and Rural Development
Michael Mann told Indian journalists visiting the EU
headquarters.

India had in 2007 slashed the additional customs duty it
charged on imported (which were up to 150 per cent of value of
imports depending on the spirits), but simultaneously hiked
the basic customs duties to 150 per cent from 100 per cent.

Mann said the EU wants to "get rid of discriminatory
tariff formula" by India, particularly at the state level.

The European Commission had earlier taken India to WTO in
2007 seeking redressal of its grievances which included what
it called denial of 'national treatment' to liquor imported
from Europe.

Under the national treatment rules, the imported products
have to be treated at par with domestic items.


The WTO consultation process on the issue was suspended
following some corrective actions by New Delhi in 2007.
However, the 27-nation bloc which produces some of the finest
wines and Scotch whisky in the world is not completely
satisfied because of the increase in basic duty.

Over and above the import levies, states like Goa, Tamil
Nadu and Maharashtra which are the major consumers on imported
wines and spirits in India impose special fee on these
products. PTI PYK
JVN