WASHINGTON — The United States has formally objected to Mexico's updated trade agreement with the European Union, challenging provisions that grant exclusive rights to 340 European food and beverage names, including Parmigiano Reggiano, feta and manchego cheese.
The U.S. Trade Representative's office said the geographical indications restrict American producers from selling products labeled with generic terms like "parmesan" or "feta" in the Mexican market. U.S. dairy and agricultural industries face potential market access restrictions under the deal, known as the Global Agreement.
"The U.S. has a longstanding trade policy opposing geographical indications that restrict the use of common food terms," a USTR spokesman said. The dispute centers on intellectual property protections that the EU views as core to its agricultural trade strategy, ensuring premium pricing and market differentiation for European exports.
The objection signals friction in global trade dynamics at a time when currency and commodity markets already reflect elevated uncertainty. Trade barriers of this type can ripple through agricultural supply chains and influence inflation expectations—factors that central banks monitor closely when setting policy.
The USTR plans direct consultations with Mexican authorities to address the specific provisions. If negotiations fail, the dispute could escalate to formal settlement proceedings under trade rules, further complicating North American trade relations and potentially affecting agricultural commodity prices.
