Europe’s Wine and Spirit Cos Eye Zero Duty Imports

Europe’s Wine and Spirit Cos Eye Zero Duty Imports

European wine and spirit makers are pushing for zero duty imports under the proposed free trade agreement with India. They aim to sell products such as Polish Vodka, Champagne, and Irish Whiskey at cheaper rates in the country. The industry lobby group, spirits EUROPE, suggests significantly reducing duties in the first year and phasing them out over five years. However, they emphasize that states should not increase domestic levies to compensate for the price gap. The EU is seeking an agreement on geographical indications (GIs) to benefit its producers and remove the need to comply with Indian food standards. However, a sharp reduction in duties is viewed as detrimental to the domestic industry’s interests. The industry argues that allowing bulk items to be imported will lead to domestic bottling and related activities, benefiting the local producers specializing in brown drinks. They believe that tariff cuts for white spirits wines will have a smaller impact as they hold a small share of the market. Despite concerns, industry representatives highlight that duty cuts have worked in other free trade agreements and believe it can accelerate trade. However, the domestic industry remains cautious. Read more in the full article.

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