The Hindu Business Line : EU presses for cuts in top-up duties on wine, spirit

LIFT PROTECTION: The European Union Agriculture Commissioner, Ms Mariann Fischer Boel, and the Commerce Secretary, Mr G.K. Pillai, at a meet on `WTO Negotiations on Agriculture: Perspectives and Options,' in the Capital on Tuesday. — Kamal Narang

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New Delhi March 6 The European Union today kept up the pressure on India to reduce "additional duties" on import of wine and spirits into the country. The European Union Agriculture Commissioner, Ms Mariann Fischer Boel, said that the EU was hoping for some announcements in this regard in the budget but was upset that nothing was mentioned.

"We have no complaints on the basic protection on wines and spirits. But, there are additional tariffs of 500 per cent on certain spirits and 280 per cent on wines. Such top-up duties have to be reduced," she said here today.

On being asked why the European Union does not recognise Indian spirits from molasses as whiskeys, she said, "Whiskey is made from agricultural cereals, as per the EU definition and molasses (extracted from sugarcane) are not a cereal."

Asked how the EU plans to pursue the issue of duty reduction on wines and spirits, she said, "We are discussing within the EU. We have to consider different possibilities. One of these could be starting a panel in WTO on whether the Indian Government is in accordance with WTO norms while imposing such additional duties. We have faced such panels on sugar in Europe and had to do away with protection."

"These products are not staples, and European exporters have a legitimate interest in being able to supply to the Indian market. Could we not leave it to the Indian consumers to decide when to buy domestically produced wines and spirits and when to try something different," Ms Boel stated in conference organised by FICCI.

EU and India could hold useful discussions on Geographical Indications, she said adding, "where producers have painstakingly built up a reputation for a product over centuries of hard work, and where that reputation has become associated with the name of a place, we believe that this association should be protected. We believe that Champagne should really come from the Champagne regions, just as Darjeeling tea should come from Darjeeling, and not from China. This is about being honest to the consumer."

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