EU piles pressure on India to lower wine, spirits import duties
Brussels - The European Union on Monday called on three Indian states to lower their high import duties on spirits and wine, saying they contravene World Trade Organization (WTO) rules.
India's states of Goa, Maharashtra and Tamil Nadu represent some of the country's largest markets for wines and spirits.
And these states apply a variety of additional duties on such products, on top of a nation-wide 150 per cent import tariff, thus making it difficult for European producers to reach those markets.
"This is a breach of the WTO's national treatment principle, which requires that WTO members treat imports and domestic goods the same," officials in Brussels said.
Monday's request by the European Commission to begin WTO consultations - which are to last for no more than 60 days - is designed to find a mutually acceptable solution without having to resort to litigation.
The EU executive body has already used a similar procedure before to bring down Indian import duties of up to 550 per cent for spirits, and up to 264 per cent for wines.
Last year, EU exports of spirits to India amounted to about 57 million euros (83 million dollars), while EU exports of wine totalled some 11 million euros, according to European industry figures. (dpa)