The European Union, Switzerland and the United States filed complaints with the World Trade Organization (WTO) on taxes imposed by Saudi Arabia, the United Arab Emirates and Bahrain on energy drinks and soft drinks, Reuters reported.
The agency quoted the minutes of a meeting of the World Trade Organization held on July 3 and 4, that he asked the three Gulf states to explain the reasons for the imposition of the tax 100% on energy drinks and 50% on soft drinks.
A Geneva-based trade official said the United States had called on the three countries to cancel the tax and urged other Gulf states not to apply it, while Switzerland asked their finance ministers to study the tax adjustment.
An EU source and two diplomats in the Gulf said the EU was not opposed to the idea of imposing taxes, but felt there was discrimination because of the retail price tax and because it was not imposed on non-carbonated beverages containing sugar.
The source added that the EU would consider launching formal WTO consultations if it failed to settle the tax issue through bilateral talks.
The three Gulf states imposed the energy and soft drinks bill in 2017 amid the financial pressures caused by the sharp fall in oil prices.