WASHINGTON — The Office of the United States Trade Representative (USTR) announced Sept. 3 the National Congress of Chile approved an agreement that safeguards shipments of cheese and meat products from the US to Chile.

The International Dairy Foods Association (IDFA) shared that US cheese exports to Chile – by far the largest US cheese market in South America – accounted for more than half of all US dairy exports to Chile and exceeded $55 million in 2023.

USTR ambassador Katherine Tai explained Chile passing the law “ensures that US 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.”

Tai and Chile undersecretary of international economic relations Claudia Sanhueza exchanged letters to set the agreement in motion in late June.

With Chile’s official approval, US companies may continue growing their businesses through supplying the trade partner with specialty cheeses and meats. USTR said the agreement ensures US exporters of certain meats and cheeses can use terms such as cheddar, gouda, provolone, prosciutto and salami in Chile.

IDFA, which lauded the agreement, pointed out that Chile recently established a free trade agreement with the European Union, and EU had sought protections for its geographical indications, including popular US cheese exports to Chile, such as parmesan, gruyère and feta.

Becky Rasdall, IDFA’s senior vice president, trade and workforce policy, said the organization provided confidential feedback to US negotiators and “advocated as appropriate with Chilean officials” throughout the process.

“In a period of no new FTA negotiations, it is imperative to protect our existing agreements,” Rasdall said. “We appreciate the Biden Administration agreeing with this sentiment and responding to the EU’s attempt to limit the benefits of the US-Chile FTA.”

The US Dairy Export Council (USDEC), National Milk Producers Federation (NMPF) and Consortium for Common Food Names also collectively applauded the passage of the law in Chile. 

“Chile is a critical market and partner for US dairy in Latin America,” said Krysta Harden, president and chief executive officer of USDEC. “We greatly appreciate USTR and USDA for their hard work to strengthen this relationship, which will directly help US producers grow their businesses in Chile. We look forward to continuing to work together to create new avenues for US dairy exports and to avoid similar challenges from cropping up in other international markets.”

Likewise, NMPF president and CEO Gregg Doud said the agreement marked a milestone for US dairy producers.

“It ensures that many of our products will maintain fair access to the Chilean market, supporting the growth and success of American dairy farmers on a global scale,” Doud said. “Now we need to build on that momentum by securing agreements with other trading partners to protect export opportunities for even more US cheeses.”