EU gives 'notice' to India over strict duty regime

The European Union today gave an "informal notice" to India about filing a complaint with the World Trade Organisation against the restrictive duty regime that was denying market access to its wines and spirits.

This was stated by the EU trade commissioner Peter Mandelson after a meeting with Commerce and Industry Minister Kamal Nath. He, however, assured the Indian side that New Delhi's concerns regarding market access for its products was being taken seriously.

Mandelson said while overall tariffs in the EU were low, unwarranted barriers, if any, would be examined and remedial action would follow.

Kamal Nath raised the issue of ayurveda whose exports were expected to be hit adversely because of an EU directive - to be effective in October - which disqualified all those products which had not been in use for the last 15 years.

Sources said the directive would disqualify a large number of Indian ayurvedic products from the EU market. Nath also asked the EU to withdraw the directive, sources added.

Both sides discussed the present state of affairs at the World Trade Organisation. Nath reiterated India's position on agriculture, non-agriculture market access, services, special and differential treatment.

Mandelson pointed out that it would be very difficult to attain substantial success by the time of the Hong Kong Ministerial, unless there was a sense of urgency and forward movement. He expressed concern over the lack of progress and said countries like the US would have to reduce domestic support.

Mandelson welcomed the setting up of the high level group on trade between the EU and India. He added that the group should be structured properly and made functional in order to attain substantial results.

The two leaders discussed the India-EU investment scenario. Both stressed the huge potential of this area, including the scope of reverse flow of investments from India to the EU.