Cheese Naming Rights Emerge as Sticking Point in US-Mexico Trade Talks

A dispute over the naming rights for popular cheeses has become a significant sticking point in trade negotiations between the United States and Mexico. The conflict centers on a new trade agreement between Mexico and the European Union that grants protected status to certain European food names, a move Washington argues could harm American dairy exporters.

The Core of the Dispute

The issue stems from a trade pact signed in May between Mexico and the EU, which extends special protections to hundreds of products with Geographical Indications (GIs). These GIs tie a product's name to its region of origin, such as Parmigiano Reggiano from Italy or feta from Greece.

Washington contends that this agreement would restrict U.S. producers from selling cheese in Mexico under what it considers generic names like "parmesan" and "feta." The U.S. has long opposed the EU's GI system, which it claims creates unfair trade barriers. "It’s absolutely wrong what Mexico did," said Jaime Castaneda, executive vice president of the U.S. Dairy Export Council, in a comment to Reuters.

A Billion-Dollar Market at Stake

This disagreement is complicating broader bilateral talks and ongoing negotiations to renew the U.S.-Mexico-Canada Agreement (USMCA). For the U.S. dairy industry, the stakes are high, as Mexico is a critical export market.

Ad

• The U.S. exports approximately $1 billion worth of cheese to Mexico annually.
• In contrast, the EU's total dairy exports to the country amount to only $200 million.
• The Office of the U.S. Trade Representative stated in an April report that the EU's GI system contributes to the $1.2 billion U.S. cheese trade deficit with the bloc.

Market Impact and Industry Views

Cheese imports, predominantly from the U.S., now account for nearly 30% of domestic consumption in Mexico. The European Commission told Reuters it would not be possible to change the terms of its signed agreement with Mexico, which still requires ratification by Mexican lawmakers to take effect.

European producers view the conflict as a clash between agricultural philosophies: mass production versus protected regional traditions. Meanwhile, some Mexican cheese distributors support the EU deal, anticipating that lower tariffs would introduce higher-end European cheeses into the market. They also voiced concerns, cited by the Institute for Agriculture and Trade Policy, that cheap U.S. exports can undercut local Mexican dairy producers.