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MEXICO · TRADE
Key Facts
- Tariff India charges 150% on tequila, Mexico’s economy secretary said on Thursday 5 November.
- Talks Marcelo Ebrard said both sides agreed terms of reference and India’s trade minister promised a cut.
- Target The cut should bring the tariff below the level India applies to US bourbon, he said.
- Timing Ebrard said an agreement could be reached in 2027.
- Market The United States takes more than 80% of Mexican tequila exports; India buys about 2 million liters a year, the industry chamber says.
- Power Index Mexico ranks 2nd of 14 in The Rio Times Latin America Power Index, with 70.8 points (November 2026 edition).
Mexico wants a lower India tequila tariff and says talks are advanced, Economy Secretary Marcelo Ebrard said on Thursday 5 November. India charges 150% on imported tequila, and Ebrard said an agreement could come in 2027.
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Ebrard spoke in Guadalajara at an event of the national tequila industry chamber, which gave him its El Sueño award. He said India’s trade minister has committed to cut the tariff below the level India applies to US bourbon.
What Ebrard Said
Ebrard said negotiations with India are advanced and that Mexico already has terms of reference, the outline that guides the talks. He said India’s trade minister, his counterpart, has committed to lower the tariff.
In his words, Mexico cannot have a healthy trading relationship if India imposes a 150% tariff on tequila. He said the understanding could be reached in 2027.
Ebrard said the talks began on instructions from President Claudia Sheinbaum. The aim, he said, is a tariff below the level India applies to bourbon from the United States.
What India Has Said
India’s Ministry of Commerce and Industry said on Wednesday 28 October that the two countries signed terms of reference to launch talks on a preferential trade agreement. It said the document sets the framework, scope, modalities and roadmap for the negotiations.
The negotiating areas include market access for goods and rules of origin, and the sectors with potential include cars, chemicals, electronics, pharmaceuticals and agri-food. The tequila chamber said in September that it wants tequila included in a partial deal.
Why India Matters for Tequila
India imports about 2 million liters of tequila a year, and volumes grew over 30% from 2024 to 2025, the industry chamber says. Its director general, Ana Cristina Villalpando, said in September that talks point to a partial deal covering only products of interest.
Villalpando projected India could become a top-10 tequila destination by 2030. The United States remains by far the main buyer, taking more than 80% of Mexican tequila exports.
In Plain English, Who Is Who
Marcelo Ebrard is Mexico’s economy secretary, the cabinet member who negotiates trade deals. Claudia Sheinbaum is Mexico’s president.
The Cámara Nacional de la Industria Tequilera, or CNIT, is the national tequila industry chamber, which represents producers. Its president is Roberto Ciprés Cruces, and 66 producer companies, together making about 80% of tequila, attended the event.
A tariff is a tax a country charges on imports, which raises the shelf price. Terms of reference are the agreed list of topics and rules for negotiating a deal.
What It Means for You
For US readers, the news shows Mexican tequila makers looking beyond their biggest market, the United States. Growth in India could ease the industry’s reliance on US shoppers and on US trade policy.
Nothing changes for US shelf prices, because the tariff in question is India’s and not the United States’. Investors in spirits companies can watch whether a signed deal lifts India sales after 2027.
What Is Not Known
The size of the cut is open, because Ebrard named no target rate. India’s Ministry of Commerce and Industry can say what rate it has in mind once talks move forward.
Whether tequila will be part of the first list of products is unconfirmed. The two governments can say once negotiators publish the product lists.
More: Latin America news in English, every day from The Rio Times.
Frequently Asked Questions
What is India’s tariff on tequila?
India charges 150% on imported tequila, according to Mexico’s economy secretary. He said Mexico wants it cut.
When could the deal be signed?
Ebrard said an agreement could be reached in 2027, and that he will invite the tequila chamber and Jalisco’s governor to the signing.
How much tequila does India buy?
India imports about 2 million liters a year, and volumes rose more than 30% between 2024 and 2025, the tequila chamber says. The United States takes more than 80% of Mexican exports.
Has India confirmed the tequila deal?
India’s commerce ministry confirmed that the two countries signed terms of reference for preferential trade talks on 28 October. The tariff commitment is Ebrard’s account of his talks with India’s trade minister.
Sources: Remarks by Economy Secretary Marcelo Ebrard at the Día del Tequilero event, Guadalajara, 5 November 2026, as reported by Mexican news media; India’s Ministry of Commerce and Industry, statement on the India-Mexico terms of reference, 28 October 2026, as reported by news agencies; Cámara Nacional de la Industria Tequilera (CNIT), export data and statements by its director general, 10 September 2026.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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