Mexico has opened negotiations with India to reduce the 150% import duty on tequila, seeking to bring the tariff below 50% through a modernised trade agreement targeted for 2027. The proposed reduction is aimed at improving tequila’s competitiveness in India and expanding access to one of the world’s largest consumer markets. Mexico’s Economy Secretary Marcelo Ebrard announced the development on November 5, 2026, during an event marking National Tequila Maker Day in Guadalajara, Jalisco.
Ebrard said both countries had already established terms of reference for the negotiations and that India’s Commerce Minister had committed to working towards a reduction in the tariff. He described the existing 150% duty as a significant barrier to trade and said the discussions would need to progress towards a formal agreement. Mexican officials also want industry representatives and local authorities involved when the proposed accord is signed.
For Mexico’s tequila industry, India represents an important opportunity to diversify exports beyond the United States, which remains the dominant destination for Mexican tequila. With a population of approximately 1.5 billion, India offers considerable long-term potential, particularly as consumer interest in imported and premium alcoholic beverages grows.
Despite the high import duty, tequila exports to India have increased by 33% over the past five years, according to the National Chamber of the Tequila Industry (CNIT). Annual tequila sales in India have crossed one million litres, demonstrating demand despite steep taxes and competition from domestic alcoholic beverages.
Diwali Whisky Gifting Guide 10 Indian Whisky Brands to Explore This Festive Season
BULK SCOTCH BOOM: Is the India–UK FTA Reshaping India’s Whisky Industry?CNIT President Roberto Ciprés Cruces highlighted the importance of expanding international markets through industry investment, innovation and cooperation with government authorities. He said tequila’s future growth would depend not only on protecting established markets but also on developing new destinations.
Mexico’s broader export performance also reflects continued growth. Tequila exports reached 325.2 million litres through September, an increase of 2.2% compared with the same period last year, according to CNIT figures.
If negotiations result in an agreement in 2027, a reduction in India’s tequila import duty could improve market access, support greater competition and create new opportunities for Mexican producers. The proposed tariff revision could also strengthen trade relations between the two countries while expanding consumer access to tequila in India.
About the Author
