US can't hold 'heavy duty' Indian drink
The US asked the WTO to help settle a row over the heavy duties India charges on liquor imports.
By Agencies |
NEW DELHI: The United States asked the World Trade Organization on Wednesday to help settle a row over the heavy duties India charges on liquor imports.
Through a combination of duties, India's levies on wine and distilled spirits can add up to 550 per cent, although according to New Delhi's WTO commitments, they should not exceed 150 per cent, a US embassy statement released here said.
"With its fast-growing middle class, India could be an important export market for American wines and distilled spirits if not for these layers of duties," said US Trade Representative Susan C Schwab in the statement. The United States has asked for dispute settlement consultations at the WTO with India.
Consultations are the first step towards resolving a dispute at the global trade body before a special arbitration panel is set up. "We have raised this issue with the government of India on several occasions over a number of years. We hope the matter can be successfully resolved in WTO consultations," Schwab said.
Europe asked for WTO consultations over the wine and spirit duties in November last year, the statement noted Three months after requesting consultations, the European Union warned Tuesday it could haul India before an arbitration panel at the WTO. If the panel ruled against India, Europe could impose retaliatory duties on imports from India.
India did not accept a US request to join the consultations with Europe as a third party, the US embassy said, leading it to file a separate request.
Through a combination of duties, India's levies on wine and distilled spirits can add up to 550 per cent, although according to New Delhi's WTO commitments, they should not exceed 150 per cent, a US embassy statement released here said.
"With its fast-growing middle class, India could be an important export market for American wines and distilled spirits if not for these layers of duties," said US Trade Representative Susan C Schwab in the statement. The United States has asked for dispute settlement consultations at the WTO with India.
Consultations are the first step towards resolving a dispute at the global trade body before a special arbitration panel is set up. "We have raised this issue with the government of India on several occasions over a number of years. We hope the matter can be successfully resolved in WTO consultations," Schwab said.
Europe asked for WTO consultations over the wine and spirit duties in November last year, the statement noted Three months after requesting consultations, the European Union warned Tuesday it could haul India before an arbitration panel at the WTO. If the panel ruled against India, Europe could impose retaliatory duties on imports from India.
India did not accept a US request to join the consultations with Europe as a third party, the US embassy said, leading it to file a separate request.
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