European Trade Commissioner Peter Mandelson has thrown his weight behind the Scotch Whisky Association's (SWA) campaign to halt "unfair" tariffs imposed by India, reports The Scotsman. This follows a damning report by the EU, which found India in "blatant violation" of WTO rules.

The strongly worded report, which resulted from complaints filed by the SWA and the European Wine and Spirits Federation, threatened a full-scale trade dispute if India did not take rapid action to dismantle "additional duties" of up to 550% on imported spirits.

The 104-page document is the fruit of an eight-month EU investigation, conducted under the trade barrier regulation procedure. It has so far elicited no response from the Indian Government, which stands accused of "failing to co-operate" with the investigation into the state and local tariffs that effectively block exports to one of the biggest potential Scotch whisky markets in the world.

Legitimate Scotch whisky exports to India in 2005 were worth £26 million, though far greater volumes are believed to be traded through the black and grey markets.'

For the complete story, go to http://business.scotsman.com