NEW DELHI: Amid calls for from European spirits and wine producers to decrease tariffs in India beneath the proposed free commerce settlement (FTA), the Confederation of India Alcoholic Beverage Companies (CIABC) has sought better market access for the Indian merchandise into the European Union.
The foyer group has pointed to “non-tariff barriers” resembling its definition of whiskyand brandy to argue for his or her dismantling.For a product to be categorized as “whisky” in the EU, it has to have a maturity interval of three years or extra, and one yr to be categorised as “brandy”.
“It has been highlighted several times, along with scientific substantiations, that such long maturation is not applicable under warm Indian climate. We believe that it is effectively a non-tariff barrier since long maturation increases the cost of Indian products by 30-40% as spirit evaporates 10-15% every year under Indian climate (compared to 1-2% in Europe) and the cost of capital deployed during maturation (8-10% per annum in India compared to 2-3% for Europe).
We firmly believe that if the EU does not repeal the law pertaining to the maturation, any trade agreement will be one sided favouring only the EU and will do nothing for the Indian industry,” stated CIABC director basic Vinod Giri.
Last week, TOI had reported that EU foyer teams have been demanding zero responsibility imports beneath the proposed FTA. CIABC argued that the commerce deal between India and EU ought to be on the traces of the one with the UK, which is beneath negotiation as any distinction in phrases may outcome in routing by the extra beneficial route.
The foyer group has pointed to “non-tariff barriers” resembling its definition of whiskyand brandy to argue for his or her dismantling.For a product to be categorized as “whisky” in the EU, it has to have a maturity interval of three years or extra, and one yr to be categorised as “brandy”.
“It has been highlighted several times, along with scientific substantiations, that such long maturation is not applicable under warm Indian climate. We believe that it is effectively a non-tariff barrier since long maturation increases the cost of Indian products by 30-40% as spirit evaporates 10-15% every year under Indian climate (compared to 1-2% in Europe) and the cost of capital deployed during maturation (8-10% per annum in India compared to 2-3% for Europe).
We firmly believe that if the EU does not repeal the law pertaining to the maturation, any trade agreement will be one sided favouring only the EU and will do nothing for the Indian industry,” stated CIABC director basic Vinod Giri.
Last week, TOI had reported that EU foyer teams have been demanding zero responsibility imports beneath the proposed FTA. CIABC argued that the commerce deal between India and EU ought to be on the traces of the one with the UK, which is beneath negotiation as any distinction in phrases may outcome in routing by the extra beneficial route.
