India's First Wine, Food and Hospitality Website, INDIAN WINE ACADEMY, Specialists in Food & Wine Programmes. Food Importers in Ten Cities Across India. Publishers of delWine, India’s First Wine.
Skip Navigation Links
About Us
Indian Market
Wine & Health
Wine Events
Retail News
Contact Us
Skip Navigation Links
Wine Tourism
Book Review
Photo Gallery
Readers' Comments
Video Wall
Media Partners
Ask Wineguyindia
Wine & Food
Wine Guru
Gerry Dawes
Harvest Reports
Mumbai Reports
Advertise With Us
US Report on Indian Market Released
Top Ten Importers List 2015-16
On Facebook
On Twitter
Delhi Wine Club

Posted: Friday, October 30 2009. 11:13

EU May Soften Stand against India

France has gone on record saying that the dispute with India over duties on wine and spirits should be sorted out through discussions and not by going to the WTO, according to the statement made by the visiting Foreign Trade Minister France Anne Marie to the reporters at a function organized by the Confederation of Indian Industries (CII)in Delhi on Monday.

"We hope very much that the discussions under process will go on and that solutions can be found without having to approach the WTO," she said according to PTI and a report by Business Standard earlier this week. Till recently the European Union (EU) had taken a tough stance by warning India that it would approach WTO if taxes on wines and spirits imported from Europe are not slashed according to the agreed levels.

Although EU takes action on behalf of the block of its 27 member nation members, countries like France play an important role in the wine and spirit issues. "We are sure that arrangements can be found between Indian producers and Europeans, especially French producers," she said, indicating a softer stance.

The European Commission had earlier taken India to WTO in 2007 seeking redressal of its grievances which included the denial of 'national treatment' to wine and liquor imported from Europe. This had resulted in the government finally eliminating the Additional Customs Duties in July 2007.

Under the national treatment rules, the imported products must be treated at par with domestic products. The WTO consultation process on the issue was suspended following the corrective actions by New Delhi. However, Maharashtra had increased the special excise duties to 200% immediately, and Delhi followed earlier this year, besides Karnataka. Maharashtra finally relented a few months ago while Delhi continues to defy, for the time being. Goa and Tamil Nadu are other offenders, according to EU.

If the EU ends up taking a softer stand with France actively supporting the new strategy because of its many other commercial interests in India, it may be a while before the excise duties are reduced in Delhi. Despite the drop of about 35-40% in wine sales in Delhi since the excise was increased, the revenue collection has reportedly increased due to the higher taxes more than offsetting the fall in sales. This may go against the Delhi denizens who want to enjoy a glass or two of the healthy drink with their meal in the evening.


Want to Comment ?
Please enter your comments in the space provided below. If there is a problem, please write directly to Thank you.

Generate a new image

Type letters from the image:

Please note that it may take some time to get your comment published...Editor

Wine In India, Indian Wine, International Wine, Asian Wine Academy, Beer, Champagne, World Wine Academy, World Wine, World Wines, Retail, Hotel


Copyright©indianwineacademy, 2003-2020 |All Rights Reserved
Developed & Designed by Sadilak SoftNet