The Consortium for Common Food Names (CCFN), National Milk Producers Federation (NMPF), International Dairy Foods Association and U.S. Dairy Export Council (USDEC) commended the passage into law of commitments by the Chilean National Congress that safeguards the rights of U.S. cheese and meat exporters to use certain common names – such as “parmesan” and “prosciutto” – to market and sell their products in the Chilean market.
The agreement came together following an exchange of letters between U.S. Trade Representative Katherine Tai and Chile’s Undersecretary of International Economic Relations Claudia Sanhueza on June 21, which confirmed a mutual understanding and agreement that U.S. exporters will be able to continue to market their products in Chile using a number of common cheese and meat terms.
Certain provisions under the EU-Chile trade agreement signed in December 2023 enabled the unfair treatment of U.S. meat and dairy products by abusing geographical indication protections. In response, CCFN, NMPF and USDEC worked closely with U.S. and Chilean government officials to address the U.S.-Chile Free Trade Agreement’s (FTA) threats to U.S. cheese and meat products.
Included in the agreement is a mutual understanding regarding “prior users” of certain cheese and meat terms in the market. For a limited number of products that the EU allowed to be grandfathered and that American exporters had exported to Chile prior to the updated FTA, all U.S. producers of those products will have the right to continue to use those terms in Chile. In addition, an extensive list of common names will also be protected for use in Chile for all U.S. producers. The exchange of letters is now integrated into the FTA between the two countries and is subject to its provisions, including the FTA’s enforcement measures.
“CCFN applauds the Administration for their initiative to negotiate the protection of parmesan and a number of other key products,” said Jaime Castaneda, executive director for CCFN. “We greatly appreciate USTR and USDA’s work with the Chilean government and urge the Administration to continue its efforts to push back against the European Union’s strategic monopolization of common names. To that end, it’s vital that the U.S. establish a firm policy of proactively seeking protections for common name products with key trading partners all around the world.”
“Chile is a critical market and partner for U.S. dairy in Latin America,” said Krysta Harden, president and CEO of USDEC. “We greatly appreciate USTR and USDA for their hard work to strengthen this relationship, which will directly help U.S. producers grow their businesses in Chile. We look forward to continuing to work together to create new avenues for U.S. dairy exports and to avoid similar challenges from cropping up in other international markets.”
“IDFA applauds the Biden Administration for its ongoing efforts to protect U.S. dairy exports by enforcing existing agreements and developing innovative solutions, such as this exchange of letters, to resolve unnecessary trade irritants,” said Becky Rasdall, senior vice president, trade and workforce policy, IDFA. “Throughout the process, IDFA has provided confidential feedback to U.S. negotiators and advocated as appropriate with Chilean officials, including by sharing U.S. perspectives on the economic damages of GIs with Chilean members of parliament and staff.
“In a period of no new FTA negotiations, it is imperative to protect our existing agreements. We appreciate the Biden Administration agreeing with this sentiment and responding to the EU’s attempt to limit the benefits of the U.S.-Chile FTA. IDFA commends the efforts of USTR and USDA staff in Washington and Santiago for ensuring U.S. cheeses can continue to be exported to one of our oldest FTA partners.”
“This agreement is a milestone for U.S. dairy producers,” said Gregg Doud, president and CEO of NMPF. “It ensures that many of our products will maintain fair access to the Chilean market, supporting the growth and success of American dairy farmers on a global scale. Now, we need to build on that momentum by securing agreements with other trading partners to protect export opportunities for even more U.S. cheeses.”
The agreement will enter into force 90 days from the National Congress’ Sept. 3 approval.
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