Claim: Tequila is a liquor made from the blue agave plant.

Tequila -LRB- Spanish -RRB- is a regionally specific name for a distilled beverage made from the blue agave plant , primarily in the area surrounding the city of Tequila , 65 km northwest of Guadalajara , and in the highlands -LRB- Los Altos -RRB- of the central western Mexican state of Jalisco . Although tequila is similar to mezcal , modern tequila differs somewhat in the method of its production , in the use of only blue agave plants , as well as in its regional specificity . Tequila is commonly served neat in Mexico and as a shot with salt and lime across the rest of the world .   The red volcanic soil in the surrounding region is particularly well suited to the growing of the blue agave , and more than 300 million of the plants are harvested there each year . Agave grows differently depending on the region . Blue agaves grown in the highlands Los Altos region are larger in size and sweeter in aroma and taste . Agaves harvested in the lowlands , on the other hand , have a more herbaceous fragrance and flavor .   Mexican laws state that tequila can only be produced in the state of Jalisco and limited municipalities in the states of Guanajuato , Michoacán , Nayarit , and Tamaulipas . Tequila is recognized as a Mexican designation of origin product in more than 40 countries . It is protected through NAFTA in Canada and the United States , through bilateral agreements with individual countries such as Japan and Israel , and has been a protected designation of origin product in the constituent countries of the European Union since 1997 .   Tequila is most often made at a 38 % alcohol content -LRB- 76 U.S. proof -RRB- for domestic consumption , but can be produced between 31 and 55 % alcohol content -LRB- 62 and 110 U.S. proof -RRB- . Per U.S law , tequila must contain at least 40 % alcohol -LRB- 80 U.S. proof -RRB- to be sold in the United States .