EU scraps dairy subsidies; US may be next

As the European Union decides to stop subsidising dairy exports, hopes that the US may do the same are rising across the Pacific.

When the US decided to implement a policy of dairy subsidies earlier this year, many dairying countries protested the decision in fear that the market could be distorted. The US then argued it was done to combat EU dairy subsidies.

But now that the EU has ditched its dairy export subsidies, the US is likely to be expected to do the same.

New Zealand's Trade Minister Tim Groser welcomed the EU decision, saying that the bloc has been gradually scaling back its export subsidies since late October.

New Zealand's Trade Minister Tim Groser welcomed news the EU had scrapped export subsidies for dairy products. The removal of the subsidies sends an encouraging message to the global dairy market, he added.