Mexico opens talks with India to cut the 150% tariff on tequila

Mexico is negotiating with India to lower the 150% import tariff on tequila, with the goal of reaching a modernized trade agreement in 2027, Economy Secretary Marcelo Ebrard said on Thursday, November 5.

Ebrard made the announcement in Guadalajara, Jalisco, during an event marking National Tequila Maker Day. He said Mexico and India have already defined terms of reference for the talks and that the Indian commerce minister has committed to reducing the tariff, which Mexican authorities and the tequila industry see as a major barrier to growth in one of Asia’s largest consumer markets.

“We cannot have a healthy relationship with a 150% tariff,” Ebrard said, according to remarks reported by El Economista.

The current duty means tequila entering India is taxed at 150% of the product’s value. Mexican officials and industry representatives are seeking a gradual reduction to below 50%, a change they say would make the spirit more competitive in the Indian market. Ebrard said the discussions still need to be converted into a formal agreement and indicated he wants industry leaders and local officials involved when the accord is signed.

The negotiations are significant for Mexico because India offers a large potential market, with about 1.5 billion consumers. For the drinks industry, a lower tariff could create room for tequila producers to expand sales in Asia and reduce some of their dependence on the United States, which remains the dominant destination for Mexican tequila exports.

Ebrard said tequila is a symbol of Mexico and argued that protecting it is part of defending the country’s broader productive base. His comments linked the tariff talks to a wider trade strategy that includes support for Mexican products abroad and efforts to strengthen market access beyond North America.

Industry data suggest there is already demand in India despite the high tariff. The National Chamber of the Tequila Industry, known as CNIT, said tequila exports to India rose 33% over the past five years, even with steep import taxes and competition from lower-priced local drinks. Annual tequila sales in India now exceed 1 million liters, a level the industry considers notable given the existing trade barriers and growing consumer interest in imported and higher-end alcoholic beverages.

Roberto Ciprés Cruces, president of CNIT, said the international position of tequila reflects years of investment, innovation and coordination between the industry and public authorities. He also pointed to the need to keep opening new markets rather than relying only on countries where tequila is already established.

“The future of tequila is not only in defending the markets we have conquered, but in conquering the markets that still await us,” Ciprés said at the event.

CNIT also credited the federal Economy Ministry with supporting tequila in trade matters beyond India. Ciprés cited the defense of tequila under the United States-Mexico-Canada Agreement, the protection of its denomination of origin and efforts to strengthen trade relations with Europe and other regions.

The push to ease Indian tariffs comes as Mexico’s tequila exports continue to grow overall, though at a slower pace than in some previous years. Through September, tequila exports reached 325.2 million liters, up 2.2% from the same period a year earlier, according to figures cited by CNIT. The industry says that performance reinforces the need to improve trade conditions and broaden the range of export markets.

If the talks produce an agreement in 2027, the change would mark one of the most important recent efforts to improve access for tequila in a large emerging market. For producers, that could mean a better chance to build volume in India over time. For Mexican trade officials, it would fit a broader policy of using negotiations to lower barriers for goods that carry strong national branding and established export value.