[A. Pole]

Mexican labor is cheaper. The factories are already there. The onerous US tax system would be avoided. Therefore, it will cost much, much more. I just effing LOVE "free" trade.

I think that this is a special case. If the tequila is being adulterated, securing the pure agave content might raise the price. I would say it is an issue of real stuff versus imitation.

[DBrow]

"If the tequila is being adulterated..."

They are not saying the product has been adulterated. Bottlers in the USA mix pure tequila with fruit juice and other flavors, then sell it as a bottled, premixed drink (Tequiza comes to mind, and there are several lemonade type products).

This is "value added marketing", not adulteration.

The price of quality tequila has risen dramatically as American consumer respect for the product grows. There are tequilas now that are marketed just like single malt scotches were marketed a decade ago, with prices over $30 per fifth. I bought six bottles of T 12 years ago in Mexico, for about $8 per bottle. The same stuff in US stores today is going for more than $45!

I think the Mexicans are realizing that they have been giving away something of value, and the profit is not acruing to them, it is acruing to US interests. They are trying to capture the profits for themselves and their workers.

From a free trade point of view, if they want to control their own commodity made from their raw materials and their labor by packaging and marketing it from their own country, why not? If Americans do not like the higher prices (and advertising claims of higher quality) they can not buy Mexican tequila and instead buy Jim Beam or Jack Daniels.

Who knows- maybe Americans will sneak across at Juarez to work in the Mexican bottling plants!