The United States and Chile have approved an agreement between the two countries that further enhances the existing U.S.-Chile Free Trade Agreement.
The exchange of letters contained in this agreement formalize protections for U.S. cheese exports to Chile, which make up over half of all U.S. dairy exports to Chile and exceeded $55 million in 2023.
Chile, which makes up well over half of all U.S. cheese exports for the continent and is by far the largest U.S. cheese market in South America, recently concluded its negotiations for a free trade agreement with the European Union. In that agreement, the EU sought protections for its geographical indications (GI), including popular U.S. cheese exports to Chile such as parmesan (as well as gruyere and feta). At the urging of the International Dairy Foods Association (IDFA) and fellow industry representatives, the Biden Administration engaged in negotiations on an exchange of letters to attach to the existing U.S.-Chile free trade agreement (FTA) that would further protect some U.S. cheeses from losing access once the EU’s GI commitments enter into force, according to the International Dairy Foods Association (IDFA).
“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," Rasdall added.
