Brussels, 20/11/2006 (Agence Europe) - In the context of WTO action regarding India announced by a decision of 7 November published in the Official Journal L 319 of 18 November this year, the Commission has requested formal consultations with New Delhi at the WTO to obtain changes to the customs and distribution regimes that are severely restricting access to the Indian market for European wines and spirits exporters. “After having allowed India a considerable period of time to address the problem, the EU now hopes to use the WTO consultation process to arrive at a mutually satisfactory solution with India”, the Commission states in a press release. The first stage that could lead to a dispute requiring the intervention of the WTO's dispute settlement body, this request for consultation follows an in-depth investigation opened in July 2005 on the complaint filed by the European Spirits Organisation (CEPS) and the Comité Européen des Entreprises Vins (CEEV). The complaint filed by European producers concerns certain Indian trade practices that are detrimental to the import and sale of wines and spirits in India, especially the high additional duties imposed in certain Indian states on top of the high federal basic customs duties (100% for wines and 150% for spirits). The complaint also denounces the specific situation in the Indian State of Tamil Nadu, where only Indian-made spirits and wines may be sold through shops and other retail outlets. According to the European industry, the Indian market is one of the largest and most promising in the world, with a volume of 87 million crates of 9 litres for spirits (a market on which the imported products are only 1% in total) and 667,000 crates for wines. In 2005, however, European exports of wines and spirits to India totalled only €6.7 and 43.3 million respectively. (eh)