India to ''correct'' import duty on wine, spirits

New Delhi, Mar 30 (UNI) Union Commerce and Industry Minister Kamal Nath today said India is at an advanced stage of negotiations with the European Union and expects to correct the high duties imposed on imported wines and spirits.

The EU and the United States (US) had lodged a complaint with the World Trade Organisation over the issue, which they see as unfair trade barriers for its wine and spirits.

''We recognise it is high. We are in talks with the EU...it is an advanced stage. I believe this situation will be corrected,'' Mr Nath said at a luxury goods conference here.

Mr Nath said India was not averse towards a reduction in the import duties provided the tariff cuts did not effect the domestic market.

''Give us a tariff clarification that does not cause injury to India, and we will continue to reduce tariffs,'' he said while addressing 20 top executives from luxury brands across the world and France Minister of Foreign Trade Christine Lagarde.

A combination of import duties and taxes reach as high as 550 per cent on imported spirits and 264 per cent on imported wines.

Ms Lagarde said France would like to see the duties coming down, adding that the ''the direct cuts will propel the industry and not hurt it''.

''We would like to see more bottles of champagne, cognac and wines to be opened in India,'' she said.

Stating that he was in talks with the EU and French officials on the issue, Mr Nath said that India would like Indian whisky to be allowed in Europe.

Earlier this month, he had told EU Agriculture Commissioner Mariann Fischer Boel that India was trying to find a way to lower the high duty structure for imported wines and spirits as certain legislative issues linked to the matter would have to be sorted out first.

He also brought up the issue of Indian whisky not being treated at par with European whisky.

Meanwhile, the US has also requested WTO consultations with India over what it calls ''excessive duties'' on wine and distilled spirits.

A European spirits producers organisation has said EU exports of spirits to India were just 43 million euros (57 million dollars) in 2005 while wine exports stood at seven million euros.

UNI