The European Union plans to approach the WTO's dispute settlement body against trade barriers maintained by India on imported wines and spirits. It served a notice to New Delhi in this regard, reports the Business Standard.

The development is worrying for the Government of India as this is likely to be followed by a formal notice by the EU to India to begin consultations. WTO procedures lay down that a country approaching the settlement body must hold consultations with the country concerned before requesting a dispute panel be set up.

The EU's move comes less than a week after the European Commission formally sent its investigation report to India on trade barriers on imported wines and spirits. It has pointed out that India imposes an additional duty on all imported wines and spirits.

In addition, excise duties and taxes are applied exclusively or at higher rates to imported wines than to domestic products by certain states. Certain states, moreover, do not allow the sale of imported wine, the EU said. http://www.business-standard.com