U.S. Challenges Mexico-EU Trade Deal Over Cheese Naming Rights

The Federal government of the United States is challenging a trade agreement signed in May between Mexico and the European Union that grants exclusive naming rights for regional cheeses to European producers. Washington argues the deal restricts U.S. producers from using terms like parmesan and feta in Mexico, which the U.S. considers generic. The European Union maintains these names are tied to specific regions in Italy and Greece and must be reserved for products such as Parmigiano Reggiano and Greek feta.

To protect its $1 billion annual cheese export market, the U.S. is leveraging high-level negotiations, including the renewal of the U.S.-Mexico-Canada Agreement and talks for an interim trade deal. The European Commission has stated the agreement's terms cannot be changed. However, the deal has not yet taken effect in Mexico as it awaits legislative ratification.

The dispute highlights a conflict between the U.S. model of mass production and the EU's system of protected regional designations. The U.S. Dairy Export Council has criticized the move, arguing that the Mexican government must ensure that manufacturers of common cheese names can remain in the market.