American cheese producers are making and selling products labeled "parmesan," "feta," "asiago," and "manchego" in Mexico, a practice the European Union (EU) wants to stop. The U.S. sees these names as common terms, while the EU treats them as geographical indications—names that are tied to specific regions and traditional production methods. In May, the EU and Mexico signed a trade agreement that would legally protect hundreds of European geographical indications, including Italian Parmigiano Reggiano, Greek feta, and Spanish manchego. This agreement is not yet active and needs approval from the Mexican parliament. The U.S. has not yet decided whether to accept these protections. For now, there is a transition period that allows Washington to seek more assurances. American cheese producers are worried that new companies may be forced to stop using these names or switch to terms like "feta-style cheese" or "imitation parmesan." Jaime Castaneda, executive vice president of the US Dairy Export Council, said the Mexican government must ensure that American and Mexican producers using common names can still sell their products in the market. The U.S. has been against the EU’s geographical indication system for several years. In its 2026 annual report, the Office of the United States Trade Representative (USTR) listed parmesan and feta as names it considers generic. The USTR believes the EU is trying to expand a "harmful" system that could make it harder for American products to enter European markets. In 2025, the U.S. sold $965 million worth of cheese to Mexico, with total dairy exports to the country reaching $2.6 billion—27% of the industry’s foreign sales. Mexico is the top market for American dairy producers, taking in about a third of their exports. Nearly 30% of the cheese eaten in Mexico is imported, mostly from the U.S. This growth has been fueled by the expansion of pizzerias and restaurant chains, as well as widely available products like Kraft’s grated parmesan or Walmart’s Great Value manchego. European producers emphasize that cheese is closely linked to its place of origin, the ingredients used, and the traditional methods of making it. In Spain, the name "manchego" is reserved for a cheese made with milk from the manchega breed of sheep in the region of Castile-La Mancha. In Mexico and the U.S., the same name can refer to very different cheeses, often made with cow’s milk. The European Commission says the agreement signed with Mexico cannot be renegotiated. The modernized deal allows for duty-free access to most traded goods, with quotas for certain agricultural products. It also covers services, investments, public procurement, and e-commerce. The dispute over cheese names is happening at a crucial time for Mexico, which is trying to get the U.S. to lower tariffs on its exports of cars, steel, and aluminum. The U.S., Mexico, and Canada are also preparing to update the USMCA, which replaced NAFTA in 2020. More than 80% of Mexico’s exports go to the U.S., and the U.S. could use these negotiations to push Mexico on the issue of cheese names. As early as 2018, a section of the North American trade agreement listed cheese names that could still be used in Mexico. Mexican authorities officially published this list in March 2026, but Washington is asking for more guarantees, especially for future producers who may want to use these names.