| Here is refreshing news for those who feel EU has discriminated against India by formally going to WTO over its high tariffs and taxes on wine and spirits imports. It announced yesterday that EU was taking Canada to the World Trade Organization too over tax discrimination against imports of wine and beer.
The EU plans to ask Canada to explain measures which provide tax relief to Canadian wine and beer but not to that imported from the EU, reports Reuter. Canadian International Trade Minister David Emerson (counterpart of our Mr. Kamal Nath) said he was "a little surprised" by the EU's actions because his government felt the taxes were consistent with those imposed on foreign alcohol by countries such as Germany and France. "We're going to persevere. We believe in our domestic beer and wine industries and we're going to do what we can to make sure they're successful," he told reporters in Ottawa.
"We're not in a world of complete free trade and we can't be a boy scout about it ... we (will) not allow ourselves to be upstaged by other countries that are undertaking various initiatives that are similar."
 EU will seek consultations with Canada on WTO rules after Canada cut excise taxes on Canadian wine and beer but left higher taxes intact on EU wine and beer imports. "These measures are contrary to the letter and spirit of the WTO rules," said EU Trade Commissioner Peter Mandelson, who was in Delhi for the crucial meeting on November 17,that failed. He said in a statement. "I hope we will be able to use the WTO consultation process to agree an amicable resolution to the problem," adds the report.
Perhaps the Indian authorities should contact the Canadian counterparts and chalk out a joint strategy.
For complete report visit http://www.reuters.com |
