| U.S.
trade officials said on Friday they are mulling whether
to continue a world trade court challenge against India
after New Delhi said it would drop hefty duties on wine
and spirits.
"We are studying India's recent announcement that
it has withdrawn the additional duty on imports of alcoholic
beverages," U.S. Trade Representative Susan Schwab
said in a statement.
A spokesman said the Bush administration had not yet
decided if it would press ahead with its challenge of
Indian duties at the World Trade Organization's Dispute
Settlement Body.
"Withdrawal of this duty would be a positive step
in addressing U.S. concerns," Schwab said.
However, India also increased the basic customs duty
on wines to 150 percent, which puts it on par with spirits
and liquor duties.
India has one of the world's biggest spirits markets,
valued at $16.2 billion at the retail level. The U.S.
beverage industry wants greater access to the growing
Asian market, where sales of U.S. wine and spirit exports
in duty-free zones, like airport shops, have grown rapidly
in recent years.
The European Union also reacted skeptically to the
news, welcoming the "reported removal of the discriminatory
duties" but also panning the decision to increase
the basic customs duty on wines.
http://in.today.reuters.com
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