Agreed, in that European customers associate names with where the product was created, not with the style of the cheese or the sausage. Wines are even more complex, being named both for the region of origin as well as for the grape sort used, with certain names reserved for combinations of both like Chianti or Champagne.
All it really is, is a difference of expectations between North American and European consumers. Europeans would like their stricter requirements, the ones they use for international trade within the EU, to be adapted to trade with the USA instead of the American naming system entering their markets.
I think we ought to be able to say "look, if you're just selling nationally, this agreement doesn't apply. If you want to export, follow these rules to make everything run smoother." My hopes are not all that high, though.