NAFTA AGRICULTURE FACT SHEET:
Alcoholic Beverages

TREATMENT OF TARIFFS:

U.S. Import Tariffs

• Upon enactment of the NAFTA agreement on January 1, 1994, the United States immediately eliminated the tariff on brandy. U.S. imports of Mexican tequila and mescal already entered duty-free under the Generalized System of Preferences (GSP), and imports remained duty-free under the NAFTA. The U.S. tariff on rum (37 cents per proof liter) and most grape wines imported from Mexico is being phased-out over 10 years. The U.S. 1.6-cents-per-liter tariff on beer imported from Mexico is being phased out over 8 years.

Mexican Import Tariffs

• Mexico immediately eliminated the 20-percent tariff on U.S. bourbon whiskey when the NAFTA went into effect. Mexico's 20-percent tariff on U.S. rum was eliminated on January 1, 1998, and the 20-percent tariff on U.S. beer imports is being phased out over 8 years. Mexican tariffs on grape wine are being eliminated over 10 years, on wine coolers over 6 years, and on most grape brandies over 10 years.

TREATMENT OF QUANTITATIVE RESTRICTIONS:

• There are no quantitative restrictions affecting U.S.-Mexico trade in alcoholic beverages.

U.S. Wine and Beer Trade with Mexico

Beer and Malt Beverages

Value in $1,000; volume in kiloliters.

Wine and Wine Products

Value in $1,000; volume in kiloliters. Imports from Mexico are very small or zero.

Last modified: Friday, November 18, 2005