India assures commitment to lower Scotch tariffs under UK trade pact

The government has assured liquor companies it will honour tariff concessions under the India-UK trade pact, signalling a possible resolution to the dispute over bulk Scotch imports

India's government on Monday assured liquor companies it would honour the India-UK trade pact and settle a dispute over Scotch tariffs, easing concerns that have rattled the $65 billion industry and players such as Pernod and Diageo, five people with direct knowledge said.

 

In the first major dispute linked to a historic India-UK trade pact implemented in July, New Delhi in recent weeks started investigating major companies and told them that bulk Scotch imports were not eligible for the tariff reduction to 75 per cent from 150 per cent agreed in the deal, Reuters has reported.

 

"We are potentially moving towards a resolution. Bulk Scotch whisky imports are indeed part of concessions under the trade deal," said one of the sources, while describing New Delhi's thinking in a closed-door meeting with industry representatives on Monday.

 

 

India's commerce ministry did not immediately respond to Reuters queries.