Cheese Naming Dispute Complicates U.S.-Mexico Trade Talks

A dispute over the use of cheese names has emerged as a new point of contention in trade negotiations between the United States and Mexico, following Mexico's new trade agreement with the European Union (EU).

According to two Mexican government sources cited by Reuters, the agreement signed in May includes provisions protecting the names of geographically designated European food products, preventing their unauthorized use in the Mexican market.

The deal strengthens legal protection for hundreds of European products covered by Geographical Indications (GI). These include cheeses such as Parmigiano Reggiano, produced in northern Italy, and Feta, which originates from designated regions of Greece. Under the agreement, companies outside Europe would not be permitted to market cheese under those protected names in Mexico.

The United States has objected to the arrangement, arguing that names such as Parmesan and Feta have become generic product descriptions rather than exclusive regional designations. U.S. officials fear the new rules could prevent American cheese producers from selling products under those names in the Mexican market.

Jaime Castaneda, Executive Vice President of the U.S. Dairy Export Council, said companies in the United States and Mexico that have produced and marketed cheese under these names for decades should not be forced out of the market to benefit European producers.

The issue comes as Washington and Mexico are engaged in broader trade negotiations aimed at reaching an interim trade agreement this year, while discussions are also underway to renew the United States-Mexico-Canada Agreement (USMCA), a pact considered vital to Mexico's economy.

The cheese naming dispute has become increasingly important for the United States because Mexico is one of its largest export markets for dairy products. American cheese exports to Mexico are valued at approximately $1 billion annually, compared with about $200 million in total EU dairy exports to the country.

Mexico is among the world's largest consumers of cheese and has several popular domestic varieties, including Oaxaca cheese and Queso Fresco. However, cheese imports have risen steadily since the 1980s, and imported products now account for nearly 30 percent of the country's total cheese consumption, with the majority supplied by the United States.

Analysts say the dispute reflects a broader difference in approach: while the European Union places strong emphasis on protecting traditional food names linked to specific regions and heritage, the United States argues that many of those names have become generic terms used globally.