New Zealand disappointed over EU dairy export subsidies

The New Zealand government has expressed disappointment over the European Union's decision to reintroduce export refunds for butter, cheese, and milk powders, which were suspended two years ago.

Trade Minister Tim Groser and Agriculture Minister David Carter said the move would send a negative signal at a critical time for the multilateral trade negotiations and the global economy, when all efforts are being made to reject protectionism and to convince countries to remove distortions in agricultural markets.

While the full details of the subsidies are not yet known, it is understood they will take effect from next week.

The agreement by WTO members to eliminate export subsidies in agriculture is one of the most important potential gains from the round, adds Grosser.

Grosser said unless New Zealand moves, unsubsidised producers will continue to bear the cost of the trade-distorting measures of others.