US Dairy Shifts Strategy With Central America Deals

Reciprocal US dairy agreements with El Salvador and Guatemala reinforce existing access, curb regulatory risk, and protect common names

10 Feb 2026

The US dairy industry has reached reciprocal agreements with El Salvador and Guatemala that aim to stabilise export conditions in Central America, as trade disputes increasingly shift from tariffs to regulation.

Announced in January, the arrangements are not conventional trade deals. Most US dairy products already enter the two markets duty free under the Dominican Republic–Central America Free Trade Agreement, known as CAFTA-DR. Instead, the new commitments focus on reducing regulatory risk, which exporters say has become a larger obstacle than border taxes.

US dairy groups have long complained that sudden changes to approval processes, certification requirements or labelling rules can disrupt shipments and raise costs with little notice. The agreements seek to pre-empt such barriers by setting clearer expectations on how rules will be applied.

Both El Salvador and Guatemala have reaffirmed their recognition of US food safety systems and existing export certificates. They have also agreed not to introduce new facility registration requirements that could slow or block imports. Industry representatives say this provides exporters with greater predictability and supports longer-term commercial relationships.

A key element of the deals is the protection of so-called common names for cheese, including parmesan, feta and gruyere. These terms have become a source of friction in global trade, as some countries attempt to reserve them for producers in specific regions. US dairy organisations argue that such restrictions confuse consumers and weaken competition. By securing continued use of widely recognised names, the agreements protect branding that US producers rely on in export markets.

The agreements reflect a broader shift in how the US dairy sector approaches trade policy. With tariffs largely addressed in existing trade frameworks, industry groups are placing more emphasis on regulatory alignment and advance commitments. The US Dairy Export Council has said that predictable rules are now as important as market access itself.

While the effectiveness of the agreements will depend on enforcement, industry officials say they mark a more proactive approach. As agricultural trade becomes increasingly shaped by technical rules rather than tariffs, the Central America deals offer a model for managing regulatory risk in other markets.