The European Union warned on Tuesday it could haul India before the WTO over what it sees as discriminatory barriers to wine and spirits exports.
NEW DELHI: The European Union warned on Tuesday it could haul India before the WTO over what it sees as discriminatory barriers to wine and spirits exports.
The EU has long been pushing New Delhi to lower massive duties on the exports but the annual Indian budget presented last week did not touch them.
"I am very disappointed... that no steps were taken in the budget to change the tariffs," EU Agriculture Commissioner Mariann Fischer Boel told a news conference in New Delhi.
"I much prefer constructive dialogue," said Fischer Boel, adding that the EU's only recourse now may be to take India before a World Trade Organisation (WTO) disputes panel.
"We have to look into different possibilities (and) ... consider the possibility of starting a panel in the WTO," she said, adding that she would raise the issue with Indian Trade Minister Kamal Nath on Wednesday.
The European Commission, the EU's executive body, could ask a WTO panel to probe the complaint. If the panel ruled against India, Brussels could impose retaliatory duties on Indian imports.
A commission report last year, prompted by complaints from European producers, said there were "clear violations of WTO provisions" in some Indian states.
The combination of duties and taxes were as high as 550 per cent on imported spirits and 264 percent on imported wines, the report said.
Late last year the EU began formal consultations, the first step in resolving a dispute at the global trade body, before a formal dispute panel is set up.
The European Commission began probing India duties on European wine and spirits in 2005 after receiving complaints from EU producers.
Scotch manufacturers are pressing the Commission to step up the dispute at the WTO, saying their patience has run out.
The Edinburgh-based Scotch Whisky Association said last week it was disappointed that India had failed to "take any steps to align its discriminatory import and domestic tax regime."
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