The Consortium for Common Food Names (CCFN), National Milk Producers Federation (NMPF), U.S. Dairy Export Council (USDEC) and International Dairy Foods Association (IDFA) are applauding an agreement between the U.S. and Chile that further enhances the U.S.-Chile Free Trade Agreement by safeguarding the rights of U.S. cheese and meat exporters to use certain common names – such as “parmesan,” “gruyere,” “feta” and “prosciutto” – to market and sell their products in the Chilean market.

U.S. cheese exports to Chile, the largest U.S. cheese market in South America, make up over half of all U.S. dairy exports to Chile and exceeded $55 million in 2023.

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 European Union-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, USDEC and IDFA 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 in 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.

“This is a welcome development from the Republic of Chile, and I would like to thank them for their work on this agreement,” said Tai. “It ensures that U.S. producers of meats and cheeses will not be excluded from the Chilean market and will continue to see the benefits of our mutually beneficial trade relationship.”

Jaime Castaneda, executive director for CCFN, commented, “CCFN applauds the Administration for their initiative to negotiate the protection of parmesan and a number of other key products. 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.”

Castaneda further emphasized the need for the U.S. to establish a firm policy for protecting common name products with key trading partners all around the world.

Gregg Doud, president and chief executive officer of NMPF, called the agreement “a milestone” for U.S. dairy producers and echoed the need to secure agreements with other trading partners to protect export opportunities for U.S. cheeses even more.

Krysta Harden, president and CEO of USDEC, said the agreement 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.”

The agreement, which will enter into force 90 days from the National Congress’ Sept. 3 approval, is one of the oldest agreements for both countries.