WTO queries Indian tariffs on US wine
The World Trade Organisation (WTO) is examining US claims that Indian import duties discriminate against US wines and spirits.
The WTO launched its investigation following a second request by the US for it to rule on fees that India applies to products such as Napa Valley wine and Jack Daniel's whiskey. The WTO is already reviewing a similar claim made by the EU.
Rules stipulate that the establishment of a WTO investigative panel can only be delayed once. India blocked the first request this month.
India's basic import duties on wine are 100%, while the tariff on spirits is 150%, both within WTO limits. But government surcharges take the tariffs as high as 550%, depending on the Indian state.
The state of Tamil Nadu is even more extreme, banning foreign alcohol and allowing shops to sell only Indian-made wines and spirits.
By contrast, the US, EU and Japan allow almost all spirits to enter their markets duty-free. China adds a 10% tax on foreign liquor.
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