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

The cheese name issue has become a sticking point in US-Mexico trade talks, according to two Mexican government sources who spoke on condition of anonymity because, no matter how you slice it, cheese diplomacy can be delicate, Report informs via Reuters.

The US is objecting to Mexico's new trade deal with the European Union, which extends special protections to hundreds of European products whose names are tied to specific regions, such as Parmigiano Reggiano, feta and manchego. It also gives the European Union legal recourse against violations.

Washington argues that the deal, signed in May, would restrict future US producers from selling cheeses in Mexico under names such as parmesan and feta. The US has long maintained those names are generic, while the EU says parmesan should be reserved for Parmigiano Reggiano from northern Italy and feta cheese from select parts of Greece.

"It's absolutely wrong what Mexico did," said Jaime Castaneda, executive vice president of the US Dairy Export Council. "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 US and Mexico are in the midst of thorny bilateral talks to secure an interim trade deal this year, while parallel discussions are ongoing to renew the US-Mexico-Canada Agreement, a linchpin of Mexico's economy.

Those high-stakes negotiations have given the US leverage to push its case for what has become a billion-dollar market for US cheese exporters. And it is causing a headache for Mexican authorities.

Although the Mexico-EU treaty has been signed, Mexico has yet to complete the procedures needed for the pact to take effect, while the European Union has, according to a European Commission spokesperson. A spokesperson for Mexico's economy ministry said the agreement needs to be ratified by lawmakers.

The European Commission told Reuters it would not be possible to change the agreement's terms and that it had "taken note of the US actions" opposing the protections for European cheeses.

Mexico's economy ministry and the Office of the US Trade Representative did not respond to requests for comment, though the US agency has previously stated its views on the EU's Geographical Indication (GI) product protection scheme.

"The EU continues to seek to expand its harmful GI system within its territory and beyond," the trade office said in an April report.

It said that forcing dairy producers outside the bloc to use descriptors such as "imitation feta" or "asiago-style" was costly and unnecessary and contributes to the $1.2 billion US cheese trade deficit with the bloc.