Disagreements over cheese nomenclature have become a major point of friction in trade negotiations between the United States and Mexico, according to two Mexican government sources speaking on condition of anonymity because of the delicate nature of the diplomatic talks. The friction stems from American objections to a newly signed trade arrangement between Mexico and the European Union. Under that agreement, special legal protections are granted to hundreds of European products linked to specific geographic origins, including Parmigiano Reggiano, feta, and manchego, alongside legal mechanisms to enforce compliance.
Officials in Washington argue that the pact, finalized in May, threatens to curtail American dairy producers' ability to sell common varieties like parmesan and feta in the Mexican market. While the U.S. treats these labels as generic terms, the EU maintains that names like parmesan should strictly refer to Parmigiano Reggiano from northern Italy, and feta to designated regions in Greece. "It's absolutely wrong what Mexico did," said Jaime Castaneda, executive vice president of the U.S.
"The Mexican government has to make it absolutely certain that the United States and the Mexican manufacturers of common cheese names will continue to be able to be in the market." The dispute arises as the U.S. and Mexico pursue a bilateral interim trade deal this year, while also conducting parallel talks to review the U.S.-Mexico-Canada Agreement, a cornerstone of Mexico's economic framework. U.S. negotiators have leveraged these high-stakes discussions to defend an export market valued at approximately $1 billion for American cheesemakers, leaving Mexican authorities in a difficult position. Although Mexico has signed the deal with the European Union, it must complete internal procedures before implementation can occur, while the EU has finalized its steps, according to a European Commission spokesperson.
A spokesperson for Mexico's economy ministry confirmed the agreement requires legislative ratification. The European Commission told the treaty's terms cannot be renegotiated, noting it had "taken note of the U.S. actions" opposing the geographical protections. Neither Mexico's economy ministry nor the Office of the U.S.
Trade Representative answered requests for comment, though the American trade agency has repeatedly criticized the EU's Geographical Indication (GI) framework. "The EU continues to seek to expand its harmful GI system within its territory and beyond," the trade office said in an April report. The agency stated that forcing dairy producers outside the bloc to adopt alternative labeling such as "imitation feta" or "asiago-style" imposes unnecessary financial burdens and worsens the $1.2 billion U.S. cheese trade deficit with the European bloc.
Cheese plays a prominent role in the Mexican diet, with consumers traditionally favoring domestic varieties like stringy Oaxaca cheese for quesadillas or crumbly queso fresco as a food topping. Foreign imports have steadily expanded since the 1980s and now account for nearly 30% of domestic consumption. American items like Kraft's Grated Parmesan and Walmart's Great Value Manchego, along with rising demand for pizza across the country, have driven growth.
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