Joint Media Release with Minister for Agriculture, Fisheries and Forestry, The Hon Tony Burke MP
22 November 2009
End of European dairy export subsidies
Trade Minister Simon Crean and Minister for Agriculture, Fisheries and Forestry Tony Burke have strongly welcomed the decision by the European Union (EU) to end damaging dairy export subsidies.
The ministers said the decision was good news for Australian dairy producers and another sign that protectionist measures were being wound back.
Mr Crean and Mr Burke urged the United States to do same as the Europeans and put an end to dairy export subsidies.
"Given that the US introduced dairy export subsidies in response to the EU introduction of subsidies, the US has no excuse to continue with this program," Mr Crean said.
"The EU decision is good news for Australian dairy producers but the next step is for the United States to also end dairy export subsidies," Mr Burke said.
The European Dairy Management Committee this week decided to reduce the level of export subsidy refunds on butter and butter oil to zero. This means that export refunds for all dairy products are now set at zero.
The EU introduced dairy export subsidies in January this year and this was followed by the United States which in May introduced dairy export subsidies. The US Dairy Export Incentive Program remains in place.
The EU decision comes after a rise in world dairy prices and sustained and strong advocacy by Mr Crean, Mr Burke and other Australian Government Ministers against these harmful subsidies.
The elimination of export subsidies for all time will be one of the key outcomes from a completed Doha Round, making it impossible for WTO members like the US and EU to reintroduce these kind of trade distortionary measures.
Media Inquiries: Mr Crean's office, Clinton Porteous, 0403 369 588 - Mr Burke’s office, Andrew Bourke 0400 117 570 - Departmental Media Liaison 02 6261 1555