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Our Bureau

The complaint concerns trade barriers maintained by India on imported wines, spirits.

New Delhi , July 28

The European Commission (EC) has formally sent to India an investigation report concerning alleged trade barriers maintained by India on imported wines and spirits.

The report shows clear violation of WTO provisions and recommends WTO consultations, a statement made available at Brussels said. The EC still hopes that a negotiated solution could be reached with India in the coming weeks.

This was an investigation under the Trade Barriers Regulation (TBR) that allows European companies to lodge complaints with the EC against other WTO members, in case they encounter WTO-illegal trade barriers.

The EC statement said that investigations had been concluded and that there was clear violation of WTO provisions, notably Article II:1 of GATT 1994. The Commission also found that the challenged measures had caused adverse trade effects in the form of lost trade and unrealised expectation of trade.

The complaint concerns alleged trade barriers maintained by India on imported wines and spirits in the form of a) federal additional duty applied to all imported wines and spirits b) excise duties and taxes applied exclusively or a higher rate to imported wines and spirits than to domestic wines and spirits by certain Indian States and c) restrictions on importation and sale applied by certain Indian States.

In this case, the Confederation Europeenne des Producteurs de Spiritueux and the Comite Europeen des Entreprises Vins lodged a

complaint on July 20, 2005, and the investigation was opened by the Commisision on September 17, 2005.

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