Tequila in Mexico", except that it may be diluted with water for bottling in Canada. Similar to the law of Canada, the U.S. law (27 CFR 5.22 (g)) says that tequila must be "manufactured in Mexico in compliance with the laws of Mexico regulating the manufacture of Tequila for consumption in that country". Tequila Tequila () is a regional distilled beverage and type of alcoholic drink made from the blue agave plant, primarily in the area surrounding the city of Tequila, northwest of Guadalajara, and in the Jaliscan Highlands ("Los Altos de Jalisco") of the central western Mexican state of Jalisco.
Tequila brands of tequila come from the same location. In 2003, Mexico issued a proposal that would require all Mexican-made tequila be bottled in Mexico before being exported to other countries. The Mexican government said that bottling tequila in Mexico would guarantee its quality. Liquor companies in the United States said Mexico just wanted to create bottling jobs in their own country, and also claimed this rule would violate international trade agreements and was in discord with usual exporting practices worldwide. The proposal might have resulted in the loss of jobs at plants in California, Arkansas, Missouri, and Kentucky, because Mexican