‘Tequila pact’ boosts Mexican trade in China
Following an agreement to lift the ban on 100% blue agave Tequila in China, trade volume between China and Mexico soared to almost US$68 billion, reports claim.
China is now able to import and sell these products after the Mexican president Enrique Pena Nieto and Chinese president Xi Jinping signed the so-called “Tequila pact” in June last year, ending a five-year ban of 100% agave brands.
The product was first prohibited by the Chinese government in 2008 amid fears of its high methanol content and formed part of a government crackdown on fake alcohol.
According to cctv.com, Mexico is now China’s second largest trading partner in Latin America, despite the lack of a Fair Trade Agreement between the two companies.
The news site claimed that two-way trade increased from US$63bn in 2012 to US$68bn in 2013, while some analysts have forecast that the bilateral trade volume will hit a fresh record this year.
Reports also suggest that by lifting restrictions imposed on Tequila imports, China has “warmed up” relations with Mexico, encouraging increased trade.
In September last year, the head of the CNIT, the spirits main trade association in Mexico, said: “We are expecting to export 10 million litres of Tequila to China in five years, and make China the second largest market after the United States.”
Meanwhile, Raffaele Berardi, CEO of Fraternity Spirits, told The Spirits Business in October last year that high-end Tequila has the potential to gain the same recognition as Scotch due to its “enormous potential” in China.