The Executive Yuan's plan to lower the price of rice wine through legal amendments has hit an obstacle as the U.S. and the E.U. both expressed their opposition to it. And they threaten to file a suit against Taiwan in the WTO if the government doesn't change its mind.

A bottle of rice wine is NT$50. The Executive Yuan has decided to amend the tobacco and alcohol tax law to lower the price of rice wine. The new law would categorized rice wine as a cooking wine. Tax for each 0.6 liter bottle of rice wine would drop from NT$29.25 to NT$5.4, decreasing the price to NT$25, or half the current price.

But the US and EU are against such a measure, and have use various channels to express their opposition to the Economics Ministry. They believe rice wine is in the same category as brandy or whiskey. If Taiwan decides amends its law, they would consider filing a grevieance against our country in the WTO. Vice Premier Sean Chen, who was participated in WTO negotitations, said he would continue the dialogue with other countries.

Chen said he has already hired a market research firm to see if consumption would change if the tax is lowered, hoping to clear up the misunder