New US farm subsidies under attack
May 25th, 2009
The Govt is under pressure to take the strongest possible measures against a decision by the US Govt to reintroduce export subsidies on dairy products. The move has drawn widespread condemnation. Dairy Companies Association of NZ chairman, Malcolm Bailey, says he is frustrated with the move, as it would undermine confidence in the global dairy market which is showing signs of recovery. “At a time when the elimination of export subsidies remains on the negotiating table at the World Trade Organisation in Geneva, this is a lousy signal to the global trading system about US intentions.”
Trade Minister, Tim Groser, is equally upset saying the move is disappointing, a setback and damaging to world markets. “Export subsidy assistance will have a relatively small effect on income for US dairy farmers, and may even prove counterproductive by creating uncertainty and depressing international dairy market prices.” Groser adds unsubsidised producers, like those from NZ, will bear the cost of these trade-distorting measures.
Meanwhile FedFarmers’, Philip York, says he is shocked at the US Govt move. “The US dairy lobby is more interested in protecting subsidies than in exporting on free-market principles.” Fonterra’s MD of global trade, Kelvin Wickham, says it is bad news for the market.
Copyright © The Main Report Group - NZ AGri-Business
