Mexico–EU Trade Deal Triggers US Concerns Over Food Products

Mexico’s negotiations to grant concessions to the European Union as part of the modernization of the EU–Mexico Free Trade Agreement (TLCUEM) could open a new trade dispute with the United States. In his opening statement before the House Committee on Ways and Means and the Senate Finance Committee, Jamieson Greer, United States Trade Representative (USTR), questioned Mexico’s decision to negotiate protections for various European varieties of meat and cheese. The US official warned that these measures threaten US producers’ access to the Mexican market.

The complaints raised by the US trade representative stem from the reduction of tariffs and tariff-rate quotas that Mexico granted to the European Union under the updated TLCUEM, which will now be known as the Modernized Global Agreement. Negotiations for the treaty were concluded in 2025, and it is scheduled to be signed in February 2026.

The original TLCUEM, which entered into force on July 1, 2000, was the first free trade agreement between a Latin American country and the European continent. The new agreement introduces far-reaching changes compared with the original, significantly expanding its scope in trade, investment, new regulatory disciplines, and legal structure. In the agribusiness sector, the 2026 version immediately eliminates tariffs on 86% of agricultural goods, while another 10% will be liberalized over seven years, benefiting sectors such as avocados, meat, and processed foods.

The concessions include a reduction of tariffs of up to 45% to 0% on European Union exports of blue cheese to Mexico, and reductions from up to 45% to 0% for other cheeses through a tariff-rate quota of 20,000 t per year. In the same direction, tariffs on fresh and processed cheese were also reduced from 45% to 0% under a quota of 5,000t.

At the same time, tariffs on Mexican imports of poultry meat from the European Union were lowered from 100% to 0%, while tariffs on pork imports were reduced from up to 45% to 0%. Finally, Mexico reduced the tariff on imports of pork loins from a rate of up to 45% to 0% through a quota of 10,000t.

Moreover, the treaty expands intellectual property protection and geographical indications on both sides. From the Mexican perspective, the new agreement recognizes and protects geographical indications such as Papantla vanilla, Ataúlfo mango, and Morelos rice, strengthening the value of these products in Europe.

In a similar agreement, during the negotiations of the USMCA, whose review process for renewal is expected to conclude in July this year, the United States secured protection for 33 cheese names that it will be able to export to Mexico without conflicts arising from the geographical indications protected by the European Union.

The list of cheeses was set out in a side letter to the agreement and includes varieties such as Blue, Blue vein, Brie, Burrata, Camembert, Cheddar, Chevre, Colby, Cottage, Coulommiers, Cream, Danbo, Edam, Emmental, Emmentaler, Emmenthal, Gouda, Grana, Havarti, Mascarpone, Monterey Jack, Mozzarella, Pecorino, Pepper Jack, Provolone, Ricotta, Saint-Paulin, Samsø, Swiss, Tomme, Tome, Toma, and Tilsiter.

However, US producers have argued that the list does not cover all the varieties they export to Mexico and are seeking to expand it. In this regard, Greer warned in December that the joint review of the USMCA will depend on the successful resolution of a non-exhaustive list of issues, including cheese. that are considered a threat to US producers.

Meanwhile, the European Union secured protection for 55 cheese varieties with geographical indication status, which cannot be marketed by the United States in Mexico. The list includes Edam, Gouda, and Brie, as well as Gruyère, Comté, Beaufort, Chabichou du Poitou, Fontina, Gorgonzola, among others.

According to data from the Council of the European Union, in 2024 trade in goods with the European Union reached a value of €867 billion (US$1.006 trillion). In the case of European Union agri-food exports to Mexico, these totaled €2.7 billion. That same year, the EU was Mexico’s third-largest trading partner, accounting for 7% of the country’s total trade.