U.S.-Mexico trade talks snagged by cheese names as $1 billion market hangs in balance

  • Mexico signed a modernized trade agreement with the European Union covering 568 protected geographical indications.
  • EU cheese tariffs will fall from as high as 45% to zero, while yogurt tariffs will also reach zero.
  • U.S. officials say the protections could conflict with Mexico’s USMCA commitments on 33 cheese names.

Cheese naming rights have become a flashpoint in U.S.-Mexico trade talks after Mexico signed a modernized Global Agreement with the European Union on May 22, 2026. The pact, signed during the EU-Mexico Summit in Mexico City, expands Mexican protection for 568 European geographical indications, including Parmigiano-Reggiano, Roquefort and other regional food and beverage products. It also cuts tariffs on many EU cheeses from as high as 45% to zero and eliminates Mexico’s 20% tariff on yogurt. U.S. officials say the protections could conflict with Mexico’s commitments under the U.S.-Mexico-Canada Agreement, which allows American producers to use 33 cheese names, including Parmesan and Gouda. The agreement also covers reciprocal protection for Mexican products such as tequila and mezcal. EU institutions granted the pact interim approval in July 2026, while Mexico’s ratification procedures remain relevant to its implementation. The dispute matters to U.S. exporters, whose cheese shipments to Mexico are worth about $1 billion annually, and to Mexico as it seeks to reduce its reliance on the United States, which receives more than 80% of Mexican exports.

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