Business · Trade · 1 hr ago
Mexico and India seek lower tariffs on tequila by 2027
Mexico and India are negotiating a deal to lower tariffs on tequila by 2027, Mexico’s Economy Secretary Marcelo Ebrard said.
Tequila currently faces a 150% import tariff in India, which makes it more expensive for buyers there.
Ebrard said India’s trade minister had committed to reducing the tariff to below the US level, while Mexico’s industry wants it lowered gradually to under 50%.
The agreement has not yet been finalized, and Ebrard said he would invite industry and local government representatives to sign it once it is ready.
India is a large potential market, and tequila sales there already exceed one million litres a year despite the high tariff and competition from cheaper local drinks.
Tequila exports to India grew 33% over the past five years, and a lower tariff could help expand the drink’s presence in India.
Mexico and India are seeking an agreement to reduce tariffs on tequila by 2027, Mexico’s Economy Secretary Marcelo Ebrard said.
Tequila currently faces a 150% import tariff in India, and Mexican authorities and the industry want it lowered gradually to below 50%.
Ebrard said India’s commerce minister had committed to reducing the tariff to a level below the US rate.
Tequila exports to India have risen 33% over the past five years, despite high import taxes and competition from lower-priced local drinks.
Annual tequila sales in India exceed 1 million litres.
- Who
- Mexico and India, represented by Mexico’s Economy Secretary Marcelo Ebrard and India’s commerce minister.
- What
- They are seeking an agreement to reduce India’s tariff on tequila.
- When
- The agreement is expected by 2027.
- Where
- India.
- Why
- Mexico wants better tariff treatment for tequila and to strengthen its access to the Indian market.
This story does not have two clearly opposing sides.
Tequila exports to India grew 33%, according to the National Chamber of the Tequila Industry.
Mexico and India are expected to have a modernized agreement giving tequila better tariff treatment in India.
- Current tariff
- 150% of the product’s value
- Target tariff
- Below 50%, reached gradually
- Expected agreement
- 2027
- Tequila exports to India
- More than 1 million litres annually
- Export growth to India
- 33% over the past five years
What people are saying
We cannot have a healthy relationship with a 150% tariff... We already have the terms of reference, and India’s commerce minister has committed to reducing that tariff to levels below the United States.
The future of tequila is not only in defending the markets we have conquered, but in conquering the markets that are still waiting for us.