Got Wine?... India doesn't. At least, not from Europe

If you're feeling in a festive mood, and craving some Italian wine or Scotch whiskey, India is not your best place to buy. With tariffs up to 550%, the EU has started complaining to the WTO. The EU sees India as a large potential market that is virtually closed to Europe due to these high duties. There is even one Indian state, Tamil Nadu, which only sells India wines and spirits.

Although called "out and out" protectionism by EU spokesman, India may very well have some good reasons for protect its own wine market from foreign goods. The high duty on wine helps India to make up for the large amount of money it spends importing crude oil. However, India also is looking at negotiations for a free trade zone between Europe and India. Lowering the duty on imported European wine will be just one of many steps India faces in hoping to continue talks with the EU on this zone.

For now, the first of many battles before a free trade zone can be established is being waged; and that is in the WTO over the duties on European wine. In the past, with similar issues, the WTO has ruled in favor of the EU.

While India may lose out on the battle of tariffs and be forced to be less protectionist, this would also provide India with a more open European market for its goods..... and more wine choices for Indians who would like to be able to afford imported wine.