EU CALLS IN THE WTO

Yesterday, the EU asked the World Trade Organization (WTO) to form a dispute settlement panel to hash out the tax issues in India. Presently, the Indian government imposes a basic customs duty of 150% on imported spirits and 100% on imported wines. Along with the additional duties, the levies range between 177% and 540%.

Last month, India refused to reform its expensive tax structure which led the EU to formally involve the WTO this week. The U.S. has also filed a complaint with the WTO about the Indian tariffs, claiming they offer unfair disadvantage for foreign businesses. (Case in point? Western countries are eager to get their piece of the burgeoning wine and spirits market in India.)

The panel process typically lasts about a year, and whatever ruling the panel agrees on is legally binding.