Hon Tim Groser
Minister of Trade
 
Hon David Carter
Minister of Agriculture

16 January 2009

Media Release        
 

EU dairy export subsidies disappointing

The Government today expressed disappointment that the European Union has decided to reintroduce export refunds for butter, cheese, and milk powders, which were suspended two years ago.

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

Trade Minister Tim Groser and Agriculture Minister David Carter expressed concern that the move would send a negative signal at this 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. 

“In recent years we have seen the Europeans take some very positive steps forward in reforming their Common Agricultural Policy, which we have welcomed, but this announcement represents a major step backward,” says Mr Groser. 

“The European move means it’s now even more urgent that we complete the Doha Development Round in the World Trade Organisation. 

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

“It is clear that unless we move forward soon, unsubsidised producers like those from New Zealand will continue to bear the cost of the trade-distorting measures of others.” 

ends

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