Philenews

US-Argentina Deal Undermines EU-Mercosur Agreement

Published February 27, 2026, 09:13
US-Argentina Deal Undermines EU-Mercosur Agreement

A new agreement between the United States and Argentina threatens to undermine the European Union's trade agreement with Mercosur. The ARTI agreement introduces a new legal framework that allows American businesses to use European product names (such as cheeses and cured meats) without the restrictions that apply to authentic European products. This alters the way geographical indications are protected, allowing for the production of imitations and creating unfair competition. The EU has invested heavily in protecting PDO and PGI products in South America, but the new agreement undermines these efforts. The ARTI agreement allows the use of names considered “generic”, even if there is no clear geographical link, paving the way for the marketing of products with European names that do not meet strict production specifications. Consumers lose the ability to distinguish between authentic and imitation products, while American producers gain a competitive advantage.