New Zealand Dairy Industry Urges Immediate Cap on Agricultural Subsidies Ahead of WTO Meeting
Source: The DairyNews
As global trade ministers convene for a WTO meeting in Abu Dhabi, the Dairy Companies Association of New Zealand (DCANZ) Executive Director Kimberly Crewther is calling on New Zealand Trade Minister Todd McClay to strongly convey this message during the meeting.
Crewther highlighted recent modeling that underscores the detrimental impact of subsidies on trade, investment, and production locations. Expressing concern over the upward trend in agricultural subsidies, particularly among OECD member countries already exceeding $800 billion annually, she emphasized the need for swift action.
The Global Dairy Distortions Model, developed by economic consultancy Sense Partners in collaboration with DCANZ, aims to provide evidence-based insights into the effects of subsidies on global dairy markets, contributing to international policy discussions.
Crewther pointed out that a 50 percent reduction in EU farm subsidies could increase the traded value of cheese for non-EU exporters by 8 percent, citing substantial impacts on dairy markets. She emphasized that these findings are not exclusive to EU dairy subsidies, characterizing the dynamic as universal.
Referring to the OECD Agricultural Policy Monitoring and Evaluation Report, which recognizes the altering effects of subsidies on trade, investment, and production location, Crewther stressed that addressing the trade-distorting impacts of agricultural subsidies must be a central focus during the Ministerial Conference discussions.
"Agricultural subsidies need to be a central focus of the Ministerial Conference discussions, and there needs to be clear movement forward," urged Crewther, emphasizing the benefits of a multilateral rules-based trading system in avoiding negative economic, environmental, and food security impacts.
The Global Dairy Distortions Model, developed by economic consultancy Sense Partners in collaboration with DCANZ, aims to provide evidence-based insights into the effects of subsidies on global dairy markets, contributing to international policy discussions.
Crewther pointed out that a 50 percent reduction in EU farm subsidies could increase the traded value of cheese for non-EU exporters by 8 percent, citing substantial impacts on dairy markets. She emphasized that these findings are not exclusive to EU dairy subsidies, characterizing the dynamic as universal.
Referring to the OECD Agricultural Policy Monitoring and Evaluation Report, which recognizes the altering effects of subsidies on trade, investment, and production location, Crewther stressed that addressing the trade-distorting impacts of agricultural subsidies must be a central focus during the Ministerial Conference discussions.
"Agricultural subsidies need to be a central focus of the Ministerial Conference discussions, and there needs to be clear movement forward," urged Crewther, emphasizing the benefits of a multilateral rules-based trading system in avoiding negative economic, environmental, and food security impacts.
