The US spirits industry is opposing plans by the Mexican governemtn to regulate the production and bottling of Tequila more tightly.


Under new regulations proposed by Mexican Bureau of Standards, all Tequila will have to be bottled in Mexico. The idea is to more closely monitor the quality of the product and eradicate the sale of fake Tequila.


But of the Tequila consumed in the US, 83% is shipped in bulk from Mexico and then bottled in US plants.


The Distilled Spirits Council of the United States now fears the new ruling will hit jobs in the US, raise the price of Tequila to consumers and cause product shortage in the country.


Council president Peter Cressy has said the proposed regulation would violate rules of the World Trade Organization and commitments made by Mexico when it joined the United States and Canada in the North American Free Trade Agreement in 1994.

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