NEWS
INDIA: FREE TRADE DEAL WITH EFTA WILL HELP BOOST DOMESTIC WINE INDUSTRY
By Susan Lewis
12-3-2024
Source: Sula Vineyard
The Confederation of Indian Alcoholic Beverage Companies (CIABC) said the newly concluded free trade agreement between India and the European Free Trade Association (EFTA) will help boost the growth of India’s domestic wine industry.
The EFTA - with Iceland, Liechtenstein, Norway and Switzerland as members – signed a free trade agreement worth USD100 billion with India on 10 March.
According to the terms of the agreement, India will give tariff concessions on wine imports from EFTA countries similar to those given to Australia, and there are with no concessions for wines costing less than USD5 per 750 ml bottle.
Wines priced between USD5 and less than USD15 per bottle will see a tariff reduction from 150 percent to 100 percent in the first year, then decreasing gradually to 50 percent over 10 years.
For wines costing USD15 or more, the initial tariff cut is from 150 percent to 75 percent, eventually reducing to 25 percent over 10 years.
CIABC director general Vinod Giri said that time-bound reduction of tariff duties on an equitable and sustainable level will support the domestic wine industry.
“The India-EFTA trade deal will help in providing easier access to high-quality wines from EFTA countries without affecting the domestic wine industry adversely by ensuring that the concessions cut-off remains above the lower price segments where most of the domestic industry operates,” Giri said.
He said that the deal will also help the domestic industry further lift its quality by exposure to quality wines and possible investments.
“The deal will spur growth of the Indian wine industry,” Giri noted.
He further said the time horizon of 10 years for the staggered reduction of customs duties is long enough to help the domestic industry raise its competitiveness and product quality to match the best.
“The deal is similar to India’s trade deal with Australia which ensures no cross effects. The domestic wine industry supports over 6,000 grape-growing farmers,” he added.
(the writer can be contacted at: info@thewinechronicle.com)
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