U.S. dairy groups are disturbed by preliminary information that Mexico is poised to put new restrictions on common cheese names such as “parmesan” and “feta” for products sold within its borders.
The provision to reserve such names for products produced in Europe is part of a free-trade agreement Mexico is renegotiating with the EU.
Despite warnings from the U.S. that such a move would harm Mexico’s own dairy industry and consumers and its trading partners, early information indicates Mexico will phase out the use of some generic cheese names, yielding to the EU’s desire to monopolize those cheese markets, the groups said.
The specifics of the agreement are not yet in place, but most of the key provisions have been announced, Shawna Morris, vice president of trade for U.S. Dairy Export Council and National Milk Producers Federation, said.
“What we’ve learned from our folks on the ground certainly indicates our exports will be seeing more limited options moving forward,” she said.
Despite long-standing generic use and familiarity with consumers, generic cheese names such as parmesan, feta, munster, gorgonzola, asiago, fontina and neufchatel appear to be slated for future restrictions, she said.
That would force cheese marketers in Mexico and the U.S. to phase out the use of those names on products sold in Mexico.
U.S. cheese exports to Mexico in 2017 were nearly $391 million, according to USDA Foreign Agricultural Service.
Attempts to confiscate common food names and reserve them for products coming from the European regions where they originated is nothing new for the EU, according to the Consortium for Common Food Names.
The EU has succeeded in restricting the use of generic food names by getting trading partners to agree to a list of geographic indications. That monopolization has serious ramifications for farmers, food processors, exporters and retailers, who have built demand and markets for their products. It also leads to confusion, higher prices and fewer choices for consumers, the consortium contends.
“We are deeply disappointed that Mexico has limited U.S. access by restricting the use of common food names that have been used in the Mexican market for years,” Tom Vilsack, USDEC president and CEO, said in a press release.
It undermines the value of the market-access terms the U.S. has long had in place with Mexico, he said.
While it is understandable that Mexico might want to secure additional suppliers in light of NAFTA renegotiations, it’s another thing to make it more difficult for the U.S. to continue shipping what it has been exporting to Mexico, Morris said.
Given the U.S. and Mexico’s intentions to “do no harm” to dairy trade in updating NAFTA, it would have been more consistent for Mexico to reject the geographic indications. Instead, it seems to be going back on that intention, she said.
“It is extremely concerning,” she said.
Mexico’s general elections are this summer, and it will be up to the new government to decide how to carry forward. That could provide an opportunity for Mexico to reconsider the wisdom of what it’s done to this point, she said.
Source: capitalpress.com
