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DFNZ Welcomes WTO Ruling On Canadian Dairy Export

14 October 1999



Dairy Farmers of New Zealand welcomed news from the World Trade Organisation that Canada's dairy export subsidy scheme has been ruled illegal under the WTO agreement on agriculture.

Charlie Pedersen, Chairman of DFNZ, said that this ruling will be heartening news for New Zealand dairy farmers.

"Small exporting countries like New Zealand are particularly vulnerable to the economic and political maneuvering of larger exporting countries like Canada," said Mr Pedersen.

"This ruling shows that small exporting countries like New Zealand cannot be pushed around by the bigger players. The WTO is working well for New Zealand dairy farmers."

The world dairy market is heavily subsidised. Over US$2 billion is paid out in dairy export subsidies each year. Each year, New Zealand dairy farmers pay US$358 million in tariffs, which assists the governments collecting the tariffs to pay subsidies to their own farmers.

"This is the trading reality that New Zealand faces and which makes our business environment so difficult. It is why we need to get rid of tariffs and subsidies once and for all," concluded Mr Pedersen.


For further information:

Charlie Pedersen 06-329-9896 or 025-463-480

Kevin Petersen 04-473-7269

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