Following years of negociations with the Mexican government, Brazil has now registered “Tequila” as a geographical indication. This word may therefore no longer be used in Brazil as a brand for drinks which are not produced in the region holding said name in Mexico.
The European Commission also approved the addition of "Tequila" in the Eu register of geographical indications earlier this year. The use of the term is therefore similarly regulated in the EU as in Brazil.
For more information on this, please refer to Mexico’s Government Press Release on this subject.