US to join EU in opposing Andhra duty on wines

NEW DELHI: The US has said that it would like to join the consultations requested by the EU at the WTO challenging a local levy imposed by the Andhra Pradesh government on imported liquor. The EU had contended that the ``assessment fee������, which was 100% for certain wines and 200% for certain spirits, violated WTO rules as it was not applied on domestic liquor.

The US, in its submission to the dispute settlement body of the WTO, said that it wants to participate in the talks as it has a substantial trade interest in the consultations.

As per WTO norms, any product brought in from another country has to be given national treatment which means that it has to be subjected to same regulations as the domestic ones. This means that states are free to apply local levies on imported wines and spirits as long as the same are applied on local products too.

The EU, in its submission, had argued that the ���assessment fee was inconsistent with India���s obligations under WTO, because it subjects imported bottled wines and spirits to internal taxes that are in excess of internal taxes applied on domestic like products.���

Underlining the reason for its interest in joining the consultations, the US said that it was a leading producer and exporter of wine and spirits worldwide. Over the period 2002-2007, US exports of wine and spirits worldwide was about $750 million and $806 million, respectively, making it the world���s 6th largest exporter of wine and 3rd largest exporter of spirits.

Both the EU and the US had played an instrumental role in making India bring down its import tariffs on wines and spirits to 150%���the level committed by it at the WTO.