WTO panel to examine duties on EU spirits

The World Trade Organization (WTO) established a panel today to examine India’s import duties on European wines and spirits, formally starting an investigation that could soon involve the US. The panel will examine whether wine and liquor restrictions in Indian states comply with international trade rules. India, which had previously indicated that it would consider cutting the duties to avoid deepening the dispute, said it was “disappointed that (the EU) has chosen to pursue the matter further”.

The two governments had “constructive, fruitful consultations” in the hope of reaching a settlement, India told the WTO. However, it was “confident that the panel

will find that the measures are consistent with India’s WTO obligations.” India blocked the EU’s first request for a WTO investigation earlier this month but could not delay the panel’s establishment at the second time under the commerce body’s rules. This case can result in punitive sanctions being authorised but panels take months, and sometimes years, to reach a decision.