Chile: Market Impacts from the EU-Chile Modernization Agreement
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Chile and the European Union (EU) are finalizing an Advanced Framework Agreement (AFA) that includes recognition of 216 EU geographical indications (GIs) and commonly used names such as feta, gruyere, kölsch, and parmesan. This is one of the first times that an EU trade agreement includes such broad protections for commonly used names. In 2022, the EU was the third top supplier of cheese to Chile, after Argentina and the United States. Post anticipates market impacts once the AFA is implemented: importers will have fewer sources of product, the Chilean dairy industry will be limited in their ability to produce and potentially export products bearing European-origin names, and consumers will see higher prices due to lower supply and reduced market diversification.
