/javascript" src="../static/js/analytics.js"> CalTrade Report - Adios, Margarita tequila, CalTrade Report, USTR, Distilled Spirits Council - Adios, Margarita - US, Mexico clash over tequila bottling operations CalTrade Report Asia Quake Victims Alleged violations of quality controls in the US could threaten bulk shipments and impact more than 3 million jobs in California and other states; US, which imports more than half of Mexico's annual tequila output, says move is nothing more than an attempt to ''move jobs south'' in violation of NAFTA. - Alleged violations of quality controls in the US could threaten bulk shipments and impact more than 3 million jobs in California and other states; US, which imports more than half of Mexico's annual tequila output, says move is nothing more than an attempt to ''move jobs south'' in violation of NAFTA. - Adios, Margarita tequila, CalTrade Report, USTR, Distilled Spirits Council - Adios, Margarita

 

Tuesday, June 13, 2006

 

Become a CalTrade Member--It's Free!
Front Page
Page Two
PR Newswire
Opinion
Profiles
Trade Leads
Calendar
Mission
Editor
Press Releases
Partner Orgs
Advertise Opp.
Contact Us
Int.Time Clock
Currency Calc
Cal Links
Free Services


Our Car

Front Page

E-mail PagePrint Version



Adios, Margarita

US, Mexico clash over tequila bottling operations

WASHINGTON, DC - Tequila, the distilled spirit that fueled a decades-old margarita craze in the US, has landed squarely in the middle of a trade fight between Mexico City and Washington, reports Reuters.

Mexico is threatening to cut off all bulk exports of tequila, claiming it needs to tighten quality controls on the gold-plated name-brand that is owned by the Mexican government and supposedly assures every bottle's high quality.
?
If enacted, all tequila would be bottled in Mexico.

Mexico is the only nation that produces the alcohol made from fermented sap from the blue agave plant.

But as is usually in the case with trade fights, there are opposing views.

US companies suspect that by banning bulk exports used north of the Rio Grande for individual bottling, Mexico is maneuvering to steal American bottling jobs.

Peter Cressy, president of the Distilled Spirits Council, told Reuters that Mexico's proposal an "ill-conceived action" in violation of world trade rules.

Another US industry official, who asked not to be identified, bluntly said the Mexican government was trying to "create jobs" by moving American bottling operations south.

In early August, as official Washington was mostly shut down, Mexico previewed a new regulation requiring that all tequila would have to be bottled before export.

The Bush Administration, sensing the potential loss of bottling plant jobs in California, Arkansas, Missouri and Kentucky, has been in contact with Mexico to protest the move, according to a spokesman for the US Trade Representative.
?
The agency is hoping to head off a late-October official publication of the regulation by Mexico that could go into effect as early as next year.

Allen Johnson, the chief agriculture negotiator for the US Trade Representative, has told inquiring senators that the USTR's office was still reviewing Mexico's proposed regulations and was working with industry to try to resolve the problem.

Last year, the US consumed 86.4 million bottles of tequila, more than half of Mexico's total output. Eighty-three percent was shipped to the US in bulk form and bottled here, according to the US Distilled Spirits Council.

Mexico's Tequila Regulatory Council challenged the notion that job creation was driving the move to kill bulk exports.

Judith Meza Nixon, US-Canada representative for the council, said there is evidence that handlers of bulk tequila on both sides of the border could be eroding the drink's quality.

In a telephone interview with Reuters, she said that some bulk shipments from Mexico turned out to be sugar cane alcohol or grains spirits, instead of tequila. In other instances, US bottlers were found mixing different types of tequila together, also in violation of Mexican standards, she said.

If Mexico halts bulk shipments, the government would be "protecting the authenticity of a product," which Nixon argued was within international trade rules.

Frank Coleman, a spokesman for the US distillers, said this trade dispute comes as consumption is skyrocketing. That, he said, was because of American's growing love for premium sipping tequilas and for tequila-based drinks.

Without Mexico's bulk tequila, Cressy said, there is the "significant potential" for shortages.

According to the news service, If Mexico goes ahead with the move, the US eventually could file a complaint under the terms of the North American Free Trade Agreement. For now, both industries are saying they have NAFTA on their side.

Go back, or read the latest Front Page stories:

US Seeks Stronger Ties With Brazil

WASHINGTON, DC – 06/13/06 – Rebounding from the failure to craft a Free Trade Area of the Americas pact, the Bush Administration is aiming at strengthening trade ties with Brazil in an effort to counter China’s fast-growing economic influence in Latin America; China should not only be seen as an export market with 1.3 billion consumers, but also as a nation of 1.3 billion ''new competitors,'' says US Secretary of Commerce Carlos Guittierez.


US Threatens WTO Action Against China

WASHINGTON, DC – 06/10/06 – The White House is threatening to slap China with a World Trade Organization case unless Beijing responds quickly to US concerns over its lack of action on securing intellectual property rights for US products; talks on bringing the WTO case are at a ''very advanced stage,'' according to a high level official in the Office of the US trade Representative.


High Hopes for Central American Trade Pact

WASHINGTON, DC – 06/08/06 – The US -Central American Free Trade Agreement (CAFTA) still faces some hurdles, but could become a reality ''very soon,'' according to Deputy Secretary of State Robert Zoellick; the issues relating to government procurement, intellectual property rights and agriculture still need to be worked through, says the former US Trade Representative following a session of the Organization of American States (OAS) General Assembly in Santo Domingo, Dominican Republic.





 

 


Web Design & Development by Turn-It-Digital in Los Angeles