Smith unhappy over U.S. dairy subsidies

International Trade Minister Lockwood Smith has expressed his disappointment that the United States is to carry out a further round of export subsidies under its Dairy Export Incentive Programme. The subsidies, potentially worth millions of dollars a year, are designed to assist the competitiveness of US dairy exports in selected international markets. The subsidies are applied to designated amounts of produce. New Zealand has already protested to the US on a number of occasions about the subsidies, Dr Smith said.

"The US is well aware of our concerns on this score. But I had hoped that, in the spirit of commitments made by the US to a freer international trading environment, the Americans might have moved by now to end these subsidies." Dr Smith said New Zealand would be monitoring closely the practical impact on New Zealand dairy exports of the latest subsidy allocations.

"It is the unsubsidised New Zealand producer who bears the brunt of subsidisation by others. I will be taking every opportunity to remind countries which maintain such unfair practices that New Zealand takes a dim view of such selectivity when it comes to trade liberalisation."