Exporters gain rights to use common names in Chile’s markets

The U.S. dairy and meat industries secured a win following the passage of a law by Chile’s National Congress that allows U.S. exporters to continue using common food names — such as “parmesan” and “prosciutto” — in the Chilean market.

The development follows efforts by the Consortium for Common Food Names, the National Milk Producers Federation, and the U.S. Dairy Export Council, which have been working to ensure that U.S. producers are not unfairly restricted in their ability to market their products abroad.

The agreement between the U.S. and Chile was formalized through an exchange of letters on June 21, 2023, between U.S. Trade Representative Katherine Tai and Chile’s Undersecretary of International Economic Relations Claudia Sanhueza. The mutual understanding confirmed that U.S. exporters could continue to use a variety of common cheese and meat terms in their marketing efforts, protecting a crucial aspect of U.S. trade in the region.

Concerns arose after the signing of the EU-Chile trade agreement in December 2023, which included geographical indication protections that could have limited U.S. access to the Chilean market. The EU’s push for stricter GIs threatened to block the use of common food names by non-European producers, potentially disadvantaging U.S. dairy and meat exporters. In response, CCFN, NMPF, and USDEC collaborated with both the U.S. and Chilean governments to address the potential threats posed by the U.S.-Chile Free Trade Agreement to U.S. products.

A key aspect of the new agreement is the recognition of “prior users,” allowing U.S. producers who were already exporting certain cheeses and meats to Chile to continue using the same terms. The agreement also safeguards a broader list of common names, ensuring that all U.S. exporters can market their products under familiar terms without fear of losing access due to GI restrictions. This arrangement is now integrated into the U.S.-Chile FTA, and its enforcement provisions will apply to ensure compliance.

Industry leaders praised the U.S. administration for its role in securing these protections. Jaime Castaneda, executive director of CCFN, noted that the agreement reflects a necessary step in countering the European Union’s attempts to monopolize common food names. He urged continued proactive efforts to secure similar protections in other key markets.

Krysta Harden, president and CEO of USDEC, emphasized the importance of Chile as a key market for U.S. dairy exports in Latin America. She credited the U.S. Trade Representative and the U.S. Department of Agriculture for their efforts in strengthening the U.S.-Chile trade relationship, which directly benefits U.S. producers.

Gregg Doud, president and CEO of NMPF, called the agreement a milestone for U.S. dairy producers, ensuring that American cheeses will continue to have fair access to the Chilean market. He highlighted the need to extend these protections to other trading partners in the future to support the continued growth of U.S. dairy exports.

The agreement is set to take effect 90 days after its approval by the Chilean National Congress on September 3, 2024, further solidifying U.S. exporters’ ability to compete fairly in Chile and setting a precedent for future trade negotiations.

Chile is the third largest market in South America for U.S. agricultural products, after Colombia and Peru. In 2022, the US exported $1.1 billion worth of agricultural and related products to Chile, holding a 12 percent market share.