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

A contentious issue has emerged in U.S.-Mexico trade negotiations: the dispute over cheese names. According to Mexican government sources, the United States objects to Mexico's new trade deal with the European Union, which grants special protections to numerous European cheeses named after specific regions, like Parmigiano Reggiano, feta, and manchego.

The EU also provides the EU with legal action against any violations. Washington contends that the agreement, signed in May, would hinder future U.S. cheese producers from selling their products under names such as parmesan and feta in Mexico.

U.S. Dairy Export Council executive vice president Jaime Castaneda emphasized, "The Mexican government has to ensure that the United States and Mexican manufacturers of common cheese names can continue to operate in the market." The Mexican government is awaiting the necessary ratification procedures for the treaty, while the EU has already completed its steps. Mexico's economy ministry and the U.S. Trade Representative's office did not respond to requests for comment.

Despite the trade deal's signing, Mexico hasn't finalized the required procedures for it to take effect, while the EU has. A spokesperson for Mexico's economy ministry said the agreement needs to be ratified by lawmakers. The European Commission reportedly stated that the U.S. actions opposing the protections for European cheeses are irreversible, and it will not alter the agreement's terms.

Mexican authorities are in the midst of high-stakes bilateral talks to secure an interim trade deal this year, while parallel discussions aim to renew the U.S.-Mexico-Canada Agreement, crucial to Mexico's economy. Mexico, among the world's top cheese consumers, favors domestic varieties like Oaxaca cheese and queso fresco, but imports make up nearly 30% of domestic consumption. U.S. cheese exports to Mexico total about $1 billion annually, while EU dairy exports amount to a mere $200 million.