A dispute over the use of cheese names has emerged in ongoing trade negotiations between the United States and Mexico, with Washington objecting to restrictions stemming from Mexico's recent trade agreement with the European Union.

Two Mexican government sources told Reuters that the issue has become a point of disagreement in the negotiations.

At the center of the dispute is the trade agreement Mexico signed with the European Union in May, which grants protected status to hundreds of product names associated with specific European regions.

The EU argues that names such as Parmigiano Reggiano, feta and manchego are geographical indications linked to their places of origin and should be protected.

The United States, however, maintains that terms such as parmesan and feta have become generic cheese names and that American producers should be allowed to continue using them.

US opposes restrictions

Jaime Castaneda, executive vice president of the U.S. Dairy Export Council, criticized Mexico's position, saying both American and Mexican producers should be permitted to use widely recognized cheese names.

The trade agreement between Mexico and the European Union has not yet entered into force.

The European Commission has stated that the terms of the agreement cannot be renegotiated.

Economic impact

The United States exports around $1 billion worth of cheese to Mexico each year.

Imported products account for about 30 percent of Mexico's cheese consumption.

Some Mexican cheese producers have welcomed the agreement with the European Union, arguing that lower-priced cheese imports from the United States have placed domestic producers under increasing competitive pressure.(ILKHA)