Mexico’s Trade Talks With Washington Snag on Cheese Names as Tax Revenue Stalls
MEXICO · ECONOMY Key Facts —What happened: A fight over cheese names is complicating Mexico’s trade talks with Washington, while tax revenue stalls at home. —The cheese fight: Mexico’s EU deal protects 55 European cheese names, and US producers fear losing access for feta, asiago and gorgonzola. —The money: Tax collection fell 1 percent in […] The post Mexico’s Trade Talks With Washington Snag on…
A disagreement over cheese names is putting a strain on Mexico's trade talks with the United States, while tax revenue in the country is stagnating. Mexico's EU deal safeguards 55 European cheese names, but US producers worry they may lose access to feta, asiago, and gorgonzola. Tax collection in Mexico dropped by 1 percent in real terms from January to July, reaching 3.41 trillion pesos ($200.3 billion).
Income tax fell 7 percent in the same period, despite sales tax rising 9 percent due to World Cup consumption. This impacts US dairy exporters, European cheesemakers, and Mexico's Treasury, which must fund a larger 2027 budget. Mexico is set to present its 2027 budget package to Congress on September 8, with no new taxes expected.
The two fronts facing Mexico are the cheese dispute affecting trade talks and the slowing tax revenue due to shrinking income tax collections. The negotiation between Mexico and the US over cheese names is part of the review of the USMCA trade pact, scheduled for 2026. The US Trade Representative's office has formally raised the issue with Mexico.
US dairy groups are pressing Mexico on the issue as part of the review. The dispute highlights the significance of geographical indications (GI) in trade deals, with Mexico granting protected names to European products, including a tariff reduction on blue cheese. Mexico's tax situation is also a concern, with income tax falling 7 percent in real terms and total government revenues, including oil and fees, down 1.6 percent in July.
The government is expected to tighten enforcement, making the situation more challenging for Mexican businesses.
Written by urgent.news from The Rio Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
