August 09, 2006	Wednesday	Rajab 13, 1427

BRUSSELS, Aug 8: The European Commission is considering taking India to the World Trade Organisation for duties imposed on European wine and spirits that Brussels considers to be too high, a spokesman said on Tuesday.

The European Union's executive arm found last month in a 104-page report that New Delhi imposed duties on European wines and spirits imports that amounted to “blatant violations of the WTO obligations of India.”

The report said that the various duties slapped on some types of European spirits ran as high as 550 per cent and recommended taking action at the WTO against India.

“The commission hasn't made up its mind yet on India,” said spokesman for trade issues Peter Power.

“We set out very clearly to India what the problem is, what we expect India to do and decision will be taken very shortly,” he added.

With the backing of member states, the commission has sent the findings of the report to the Indian government and is poised to turn to the WTO if New Delhi does not indicate it is ready to reform its duties, an EU official said.

The EC began probing India duties on European wine and spirits last September after receiving complaints from EU producers, for whom India represents a huge potential market.

In 2004, 25-nation EU spirits exports to India amounted only to 23.3 million euros ($29.9 million) while wine exports in the same year were worth over four million euros, according to the EU's Eurostat data agency.

—AFP