Mexican Wine Wins Awards but Struggles Against EU Subsidies

Mexico City, Mexico – Mexican wines, despite winning a record number of medals in international competitions in 2024 with 870 awards, face unfair competition due to subsidies that the European Union grants to its producers. This situation, combined with the elimination of government support in Mexico and a high tax burden, limits the growth and consumption of domestic wine.

Producers from the Valle de Guadalupe point out that while Europe allocates millions of euros through its Common Agricultural Policy (CAP) to support the production, export, and marketing of its wines, in Mexico essential subsidies have been eliminated, even for water pumping. This results in only 30% of wine consumed in the country being domestic, with most imported from countries like France, Spain, and Chile.

Salomón Abedrop, president of the Mexican Wine Council (CMV), denounces that European subsidies allow their producers to export at prices below production costs, a practice he considers unfair. The European Union, with a cultivation area of 3.2 million hectares in 2020 and significantly higher yields per hectare, benefits from economies of scale and consolidated organizational structures, such as cooperatives, that strengthen its position in the global market.

In contrast, Mexico eliminated most subsidies to the agroindustrial sector, including viticulture, in 2018. Programs covering everything from irrigation and planting systems to international promotion, operated by agencies like Aserca (eliminated in 2019), were replaced by the Production for Well-being program, which provides limited amounts per producer. The disappearance of the National Agricultural Development Bank has left a gap in accessible financing for the countryside, with private interest rates reaching 25% annually.

The tax burden is another significant obstacle. It is estimated that a bottle of Mexican wine costing 1,500 pesos can pay up to 1,000 pesos in taxes, while an equivalent French bottle pays barely cents. This high percentage of taxes in the value of domestic wine (46%) hinders internal consumption, which remains low at just 1.5 liters per capita per year, far below countries like France (46 liters) or the United States (10 liters).

Despite the challenges, the CMV promotes campaigns for local consumption and training in restaurants. The inclusion of the sector in the federal “Made in Mexico” campaign in 2025 seeks to facilitate its access to commercial chains and e-commerce platforms. However, structural challenges persist, including the reduction of the federal agricultural budget, lack of financing, and unfair trade, which require attention to ensure the competitiveness of Mexican wine.