Financial Times FT.com

India’s wine drinkers prepare to toast EU

By Jo Johnson in New Delhi

Published: November 17 2006 16:38 | Last updated: November 17 2006 16:38

For India’s wine aficionados, an era of deprivation may soon come to an end. Peter Mandelson, EU trade commissioner, who arrived in New Delhi on Friday, will next week launch a formal complaint with the World Trade Organisation over the welter of taxes and duties that can push up by as much as 300 per cent the cost of wines and spirits imported to India from Europe.

Sky-high retail prices of mediocre European vin de table have kept Indian wine imports from the 25-country bloc to just €4m ($5.1m) in 2004, according to EU figures. “This is a serious issue,” says Mr Mandelson. “Their regime is not compatible with WTO rules. There are trade barriers that are a clear breach of their international commitments.”

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