Cheese Naming Rights Become Flashpoint in US-Mexico Trade Talks
US-Mexico trade talks hit a snag over cheese names, as Washington opposes EU protections for regional varieties like parmesan and feta.
A seemingly simple question — what's in a cheese name? — has emerged as a significant obstacle in ongoing US-Mexico trade negotiations. Two Mexican government sources, speaking anonymously, indicated that the issue has become a delicate point of contention between the two nations.
The core of the dispute lies in a trade agreement Mexico signed with the European Union in May. That pact extends special protections to hundreds of European products whose names are tied to specific regions, such as Parmigiano Reggiano, feta, and manchego. It also grants the EU legal avenues to challenge violations of these designations.
Washington argues that this deal would restrict future US producers from selling cheeses in Mexico under common names like parmesan and feta. The US has long held that these are generic terms, while the EU insists they should be reserved exclusively for products from their respective regions of origin.
Jaime Castaneda, executive vice president of the US Dairy Export Council, voiced strong opposition. "It's absolutely wrong what Mexico did," he said, adding that the Mexican government must ensure US producers and Mexican manufacturers of common cheese names can continue to operate in the market.
The dispute adds friction to high-stakes bilateral talks aimed at securing an interim trade deal this year, alongside parallel negotiations to renew the US-Mexico-Canada Agreement. The US is leveraging these discussions to press its case in what has become a billion-dollar export market for American cheese.
Mexico's cheese imports, primarily from the US, have surged since the 1980s and now account for nearly 30% of domestic consumption. The US exports roughly $1 billion worth of cheese to Mexico annually, dwarfing the EU's $200 million in dairy exports to the country.
European producers frame the clash as a reflection of opposing agricultural philosophies. "The US has always been a nation of high-volume consumption, which is precisely the opposite of what designations of origin represent," said Antonio Martinez, head of an organization protecting manchego's regional designation.
Some Mexican cheese sellers support the EU deal, as it would lower tariffs on European imports. Rodolfo Navarro, who runs a family-owned cheese distributor, noted that European cheese would target a higher market niche. He and other Mexican cheesemakers accuse US producers of flooding the market with cheap products, a concern echoed by the Institute for Agriculture and Trade Policy in 2023.
US producers counter that their cheeses have won international competitions and point to the popularity of processed American cheese, valued for its long shelf life and low cost. Georgina Yescas Trujano, co-founder of Mexican cheesemonger Lactography, welcomed the lower tariffs on European cheese, saying, "I'm glad tariffs on European cheese are being lowered, because Mexicans can learn to eat better cheese."
The European Commission stated it would not be possible to alter the agreement's terms and has "taken note of the US actions." Mexico's economy ministry and the Office of the US Trade Representative did not respond to requests for comment, though the latter has previously criticized the EU's Geographical Indication system as costly and unnecessary.