TEQUILA PROPOSAL THROWN TO THE WIND

A proposed tequila regulation by the Mexican government was thrown out today after almost two years of negotiations with the United States, according to DISCUS. The proposal was made in August 2003 and wanted to ban tequila shipments exported in bulk, a violation of NAFTA and WTO, and to require all tequila to be bottled in Mexico. The Council’s previous concerns were that the bans would seriously harm the tequila market in the U.S. where 74% of imported tequila is shipped in bulk. However, Mexican officials agreed to drop the proposal and signed an agreement today in Washington which allows U.S. importers to import bottled tequila or bottle it themselves.

“We are extremely pleased that the United States and Mexican governments have reached an agreement on tequila that will protect the interests of Mexican agave growers and tequila producers as well as U.S. bottlers and importers,” said Peter Cressy, President of the Distilled Spirits Council. “The agreement will ensure that the tequila sold in the United States market continues to meet rigorous Mexican standards -- a goal shared by the Distilled Spirits Council and its member companies.”