The EU-Mercosur trade agreement, which is expected to simplify import-export trade with South American countries, has received criticism from the European agricultural market but has also been identified as an opportunity by the European dairy sector. The agreement could be worth up to 245 million euros to the dairy sector, with South American countries accepting a chapter to protect geographical indications, which will protect the nine most exported Italian cheeses. However, the dairy industry has had to recover from significant setbacks, including additional duties on some of the most exported Italian cheeses to the US in 2019, which resulted in over 6 thousand tons of product being left unsold in 2020. Despite these challenges, Italy is now the leading exporter of cheese to the US market, covering 20% of total American dairy imports.