India Blocks WTO investigation of Tariffs on US Wine
In Geneva, India could successfully block a World Trade Organization investigation of import duties on American wine and spirits yesterday, delaying a U.S. complaint alleging that the country discriminates against products like wines from Napa Valley and Jack Daniel's whiskey.
India is one of the largest markets for alcohol in the world and has huge potential for growth.
"The layers of customs duties India applies to U.S. products, in particular to wine and distilled spirits, are not in line with its WTO commitments," U.S. Trade Representative Susan Schwab said last month. "We must ensure a level playing field for U.S. products around the world."
The United States, the European Union and Japan, allow nearly all spirits to enter their markets duty-free. China has a 10 percent charge to foreign liquor.
India criticized Washington's decision to bring the case to the WTO as "unfortunate and disappointing." India said it is reviewing its own trade rules to resolve the dispute, a claim it also made in criticizing Brussels' decision to bring the case to the WTO.
The U.S. said wine sales in India through special duty-free rules, such as at airports and luxury hotels grew by 350 percent between 2000 and 2005. The growth was 200 percent for American liquors.
But high import duties imposed on the vast majority of American wines and spirits means total exports remain low, the U.S. says. The Distilled Spirits Council of the United States estimates that all foreign liquors together account for less than 1 percent of the Indian market.
Three cheers to the great Indian liquor market!