Brussels, 09/03/2007 (Agence Europe) - On a visit to India until 10 March, Mariann Fischer Boel, Agriculture Commissioner, criticised the high import duties applied by India on wines and spirits. On 7 November 2006, the European Commission had called for WTO talks to be opened to seek a solution to this trade dispute that has the effect of blocking access to the Indian market for European wines and spirits (EUROPE 9310).
During a conference organised in New Delhi by the Federation of Indian Chambers of Commerce and Industry, Ms Fischer Boel said she was disappointed by India's annual budget adopted recently, which does not provide for reduction of customs tariffs on wines and spirits. “I would prefer constructive dialogue” but “we must look at the different options” and above all the possibility of triggering litigation procedure at the WTO, she said. The Commissioner considered the level of Indian taxes “unacceptable”. WTO consultation is the first stage of a procedure that can take a dispute before the organisation's Dispute Settlement Body (DSB).
The EU reproaches New Delhi for applying additional import taxes of up to 264% on wines and 550% on spirits as, it believes, this is “clear violation of the provisions of the WTO”, the Commissioner said. The fast-growing Indian market is one of the largest and the most promising in the world, with an annual volume of 87 million crates (of 9 litres) for spirits and 667,000 crates of wine. In 2005, European wine and spirit exports to India totalled only €6.7 and 43.3 million respectively.
Ms Fischer Boel said, moreover, that India was imposing other non-tariff barriers on certain EU agri-food products. “We welcome the progress that India has made in dismantling these, and we would like to see those efforts stepped up”, she said. The CEEV (Comité européen des enterprises vins) took the view that the EU should refer the matter to the WTO as soon as possible as the Indian market has been practically closed to European wines and spirits for some years now.
Furthermore, the United States decided on 6 March to follow suit by also calling for WTO consultation to be opened to find a solution to the problem of high Indian duties on wines and spirits. (lc)