Prepare for a tequila shortage

beyond hope · Post by **beyond hope** » 2003-09-29 05:43pm

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

Mexico is threatening to cut off all bulk exports of Tequila, claiming it needs to tighten quality controls on the gold-plated namebrand 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. U.S. 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, on Wednesday called Mexico's proposal an "ill-conceived action" in violation of world trade rules.

Another U.S. 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, already reeling from 3.3 million private sector job losses under its watch and 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 U.S. Trade Representative's office spokeswoman.

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 U.S. Trade Representative, told inquiring senators on Tuesday his agency was still reviewing Mexico's proposed regulations and was working with industry to try to resolve the problem.

Last year, the United States consumed 86.4 million bottles of Tequila, more than half of Mexico's total output. Eighty-three percent was shipped to the U.S. in bulk form and bottled here, according to the U.S. industry.

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

Judith Meza Nixon, U.S.-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, she said that some bulk shipments from Mexico turned out to be sugar cane alcohol or grains spirits, instead of Tequila. In other instances, U.S. 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 U.S. 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.

If Mexico goes ahead with this, the United States eventually could file a North American Free Trade Agreement complaint. For now, both industries are saying they have NAFTA on their side.

09/26/03 08:24

© Copyright Reuters Ltd. All rights reserved. The information contained In this news report may not be published, broadcast or otherwise distributed without the prior written authority of Reuters Ltd.

In related news, fraternities across the US lowered their flags to half-mast.

Montcalm · Post by **Montcalm** » 2003-09-29 05:54pm

Be careful they may send you low quality shit and keep the best for them.

Alex Moon · Post by **Alex Moon** » 2003-09-29 06:20pm

Oh shit.

As if the students at CU needed another reason to riot...[/i]

Post by **Dalton** » 2003-09-29 06:44pm

LOL, the American government is pissed because the Mexicans want to move all the bottling operations to *their* nation...yet American corporations outsource to Indonesia and India all the time, right? How ironic.

aerius · Post by **aerius** » 2003-09-29 07:03pm

The tequila shortage is bad enough as it is after some disease thing wiped out a bunch of agave plants about 5 years ago. Prices went up 50-60% and they still haven't started to come down, and now this? Good thing I don't drink tequila or I'd be mighty pissed.

Pablo Sanchez · Post by **Pablo Sanchez** » 2003-09-29 07:29pm

Montcalm wrote:Be careful they may send you low quality shit and keep the best for them.

As if they aren't doing that already.

...

All joking aside, this has to be expected. Mexico needs money desperately and they're going to go for whatever advantage they can get in the world's biggest market.

beyond hope · Post by **beyond hope** » 2003-09-29 09:22pm

Montcalm wrote:Be careful they may send you low quality shit and keep the best for them.

"Tequila, now with 20% more urine!" (or was that Corona?)

Luke Starkiller · Post by **Luke Starkiller** » 2003-09-29 10:13pm

beyond hope wrote:
Montcalm wrote:Be careful they may send you low quality shit and keep the best for them.
"Tequila, now with 20% more urine!" (or was that Corona?)

Heh, that reminds me of a line from Desperado:

Pissed off American tourist: "...and your beer tastes like piss."

Mexican: "That's cause we piss in it!"

neoolong · Post by **neoolong** » 2003-09-29 10:38pm

Luke Starkiller wrote:
beyond hope wrote:
Montcalm wrote:Be careful they may send you low quality shit and keep the best for them.
"Tequila, now with 20% more urine!" (or was that Corona?)
Heh, that reminds me of a line from Desperado:

Pissed off American tourist: "...and your beer tastes like piss."

Mexican: "That's cause we piss in it!"

That's not all they do.

beyond hope · Post by **beyond hope** » 2003-09-29 11:12pm

neoolong wrote:That's not all they do.

Auuugh!!! Bad visuals! Bad!

RedImperator · Post by **RedImperator** » 2003-09-29 11:42pm

NOOOO! Goddammit, NOT THE TEQUILA!!! Take the Scotch, take the French wine, take the VODKA, but GIVE ME MY TEQUILA!!!!

Slartibartfast · Post by **Slartibartfast** » 2003-09-29 11:45pm

Ah, bulk exports. One of the many reasons that poor nations keep getting poorer whiel rich nations keep getting richer.

Xenophobe3691 · Post by **Xenophobe3691** » 2003-09-29 11:49pm

Wow, this is gonna put a huge damper on our parties...

Alferd Packer · Post by **Alferd Packer** » 2003-09-30 12:25am

Goddammit, and tequilla's my favorite hard liquor, too.

EmperorMing · Post by **EmperorMing** » 2003-09-30 01:16am

beyond hope wrote:
Montcalm wrote:Be careful they may send you low quality shit and keep the best for them.
"Tequila, now with 20% more urine!" (or was that Corona?)

LOL!! And I used to call Corona "Piss with Lime".

Aat least I don't drink much Tequila any more.

beyond hope · Post by **beyond hope** » 2003-09-30 01:24am

I never did like tekillya, honestly: my favorites were Bacardi 151 or Goldschlager.

Xenophobe3691 · Post by **Xenophobe3691** » 2003-09-30 02:23am

beyond hope wrote:I never did like tekillya, honestly: my favorites were Bacardi 151 or Goldschlager.

Seriously, how could you stand drinking 151? That shit's like liquid fire, my throat felt sore for an hour afterwards

Knife · Post by **Knife** » 2003-09-30 02:31am

Xenophobe3691 wrote:
beyond hope wrote:I never did like tekillya, honestly: my favorites were Bacardi 151 or Goldschlager.
Seriously, how could you stand drinking 151? That shit's like liquid fire, my throat felt sore for an hour afterwards

Because after the first shot, you really don't care what your throat feels like and in the morning your head hurts too much to care what your throat feels like.

Drink it in a Flaming Dr. Pepper, its better that way.

Phil Skayhan · Post by **Phil Skayhan** » 2003-09-30 03:14am

aerius wrote:The tequila shortage is bad enough as it is after some disease thing wiped out a bunch of agave plants about 5 years ago. Prices went up 50-60% and they still haven't started to come down, and now this? Good thing I don't drink tequila or I'd be mighty pissed.

Yep and it killed off some very good brands like Porfidio. Don't expect prices to come down for at least another five years. If I recall correctly, it'll take that long to replenish the crops.

beyond hope · Post by **beyond hope** » 2003-09-30 04:17am

Xenophobe3691 wrote:
beyond hope wrote:I never did like tekillya, honestly: my favorites were Bacardi 151 or Goldschlager.
Seriously, how could you stand drinking 151? That shit's like liquid fire, my throat felt sore for an hour afterwards

The goal was just to get buzzed quick: if I actually wanted to sit down and taste my drink, I'd either have goldschlager or rumpleminze.

InnerBrat · Post by **InnerBrat** » 2003-09-30 04:37am

Oh no! Mexico wants to create jobs for Meixcans within it's biggest export industry! Whatever shall we do?

I really don't see how this is going to result in a world shortage of Tequila. It'll just be bottled in Mexico.

But if it does create a Tequila shortage: HAha! Guess who's spiteful ex depends on Tequila for a living!

SoX · Post by **SoX** » 2003-09-30 09:27am

Luke Starkiller wrote:
beyond hope wrote:
Montcalm wrote:Be careful they may send you low quality shit and keep the best for them.
"Tequila, now with 20% more urine!" (or was that Corona?)
Heh, that reminds me of a line from Desperado:

Pissed off American tourist: "...and your beer tastes like piss."

Mexican: "That's cause we piss in it!"

"and he's pissing all over the bartender over the bar,,,, everywhere.,,,, EXCEPT THE GLASS!"

but yeah,, i love tequila,, good stuff. hope this doesnt affect UK stuff,,, Jose Cuervo Especial,,,,mmmmmmmmmmm.. oh yeah snorting tequila is well funny,,, makes ya well giddy for about ten minutes.