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US-Mexico trade talks hit snag over European cheese name protections

Created at 28 Aug · 10:10 AM1 source↑ Market-relevant
IN SHORT

US-Mexico trade negotiations are facing a hurdle due to a dispute over the EU's deal granting protected status to European cheese names. The US argues this restricts its producers from using terms like parmesan and feta in Mexico.

Key Numbers

$1.2 billionUS cheese trade deficit with the EU
$1 billionannual US cheese exports to Mexico
$200 milliontotal EU dairy exports to Mexico
30%domestic cheese consumption in Mexico from imports

Who's Involved

Mexico
facing US objections to its EU trade deal on cheese names
United States
objecting to EU cheese name protections in Mexico-EU trade deal
European Union
signed a trade deal with Mexico granting protected status to European cheese names
Jaime Castaneda
Executive Vice President of the U.S. Dairy Export Council
European Commission
stated it would not change the agreement's terms on cheese names
Mexico's economy ministry
stated the Mexico-EU agreement needs ratification by lawmakers
Antonio Martinez
Head of an organization protecting manchego's regional designation
Rodolfo Navarro
Head of a family-owned cheese distributor supporting the EU trade deal
Georgina Yescas Trujano
Co-founder of cheesemonger Lactography
US-Mexico trade talks hit snag over European cheese name protections

↳ Why This Matters

The dispute over cheese names highlights the complexities and potential trade-offs in international trade negotiations, impacting billions of dollars in agricultural exports and potentially influencing consumer choice and pricing in the Mexican market.

Key facts

  • The US is objecting to a Mexico-EU trade deal that protects European cheese names like Parmigiano Reggiano, feta, and manchego.
  • Washington argues the deal will restrict US producers from selling cheeses under generic names in Mexico.
  • The US Dairy Export Council stated the Mexican government must ensure US manufacturers can continue using common cheese names.
  • The dispute is occurring during ongoing US-Mexico trade negotiations.
  • The EU has stated it will not alter the terms of its agreement with Mexico regarding cheese name protections.

The United States is raising objections to a recent trade agreement between Mexico and the European Union, specifically concerning the protection of European cheese names. This dispute has emerged as a significant obstacle in ongoing U.S.-Mexico trade negotiations, which include efforts to renew the USMCA and secure an interim trade deal.

Washington argues that the EU-Mexico deal, signed in May, would prevent U.S. producers from using common cheese names like parmesan and feta in the Mexican market. The U.S. maintains these names are generic, while the EU asserts that names like Parmigiano Reggiano should be exclusive to their region of origin in Italy, and feta to specific Greek areas.

Jaime Castaneda, executive vice president of the U.S. Dairy Export Council, criticized Mexico's actions, emphasizing the need for the U.S. and Mexican manufacturers of common cheese names to retain market access. The U.S. has previously expressed concerns about the EU's Geographical Indication (GI) system, viewing it as a barrier that forces producers to use costly descriptors like "imitation feta."

Despite the U.S. objections, the European Commission has indicated that the terms of the agreement with Mexico cannot be altered. Mexico's economy ministry has stated that the pact requires ratification by its lawmakers. The U.S. exports approximately $1 billion worth of cheese to Mexico annually, significantly more than the EU's $200 million in dairy exports to the country.

European cheese producers view the U.S. stance as representative of a mass-production agricultural culture contrasting with protected regional traditions. Some Mexican cheese sellers, however, support the EU deal for potentially lowering tariffs on European cheeses, while others, like Rodolfo Navarro, express concerns about U.S. producers undercutting local markets with cheaper exports.

Frequently asked questions

The U.S. is objecting to a Mexico-EU trade deal that grants protected status to European cheese names, arguing it restricts U.S. producers' access to the Mexican market.

Names like Parmigiano Reggiano, feta, and manchego are central to the dispute, with the U.S. viewing them as generic and the EU seeking to protect them as regional specialties.

The U.S. exports about $1 billion worth of cheese to Mexico annually, making this a significant market for American producers.

The deal has been signed, but Mexico has yet to complete the necessary ratification procedures, which require approval from lawmakers.

What Happens Next

01Mexico must complete ratification procedures for the EU trade agreement.
02Further negotiations are expected between the U.S. and Mexico regarding trade issues, including cheese names.

How It Developed

The US is objecting to a new trade deal between Mexico and the EU that grants special protections to European cheese names.
The US argues the deal restricts American producers from selling cheeses under generic names like parmesan and feta in Mexico.
The U.S. Dairy Export Council stated the Mexican government must ensure US manufacturers can continue selling common cheese names.
The dispute arises during high-stakes bilateral talks for an interim trade deal and renewal of the USMCA.
The EU stated it would not change the agreement's terms regarding cheese name protections.
Mexico's economy ministry stated the Mexico-EU agreement requires ratification by lawmakers.

Sources

T1
Dispute over cheese names causes stumbling block in US-Mexico trade negotiationsReuters

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