There's a long precedent of naming flu strains after their country of origin -- it's no more racist than referring to Mexican food (unless, perhaps, you're using it interchangeably with "swine food").
Incidentally, I notice that no-one's spoken up in defense of the poor pigs who are stuck with the stigma of having it called "swine flu" in every other country....
From what I hear, Israel decided to reject the name "swine flu" in favor of "Mexico flu!" Thanks a lot, Israel... I just hope other countries don't follow your lead. *thinks about the importance of perceived health, safety, and security threat in prejudiced attitudes and actions, especially towards Mexicans in the US, and worries about having to walk out of his apartment each day*
Ha ha ha ha ha - when Mahmoud Ahmadinejad denounced Israel as a racist country at the UN recently, the EU delegation stood up and walked out in protest. And Ahmadinejad was condemned for the speech. Ha ha ha ha ha. Looks like Israel can manage their image very well without Ahmadinejad's help !