NZ, US Could Team Up Against Subsidies

New Zealand 05.09.2025

Sourse: dairynews.today

A new analysis suggests New Zealand and the US could be allies in the fight against agricultural subsidies, reshaping global dairy trade policy.

A new perspective suggests New Zealand and the U.S. might be unexpected allies in the fight against agricultural subsidies. A recent analysis proposes that both countries could form an unlikely alliance to combat subsidies on a global scale. Despite being competitors in the dairy industry, New Zealand and the US share a vested interest in reducing market-distorting subsidies that impede fair trade and efficient agribusiness operations.

Historically, both countries have promoted a free and open agricultural trade environment. New Zealand's dairy sector, devoid of significant government subsidies, exemplifies a market-oriented system. Similarly, many in the US agricultural sector, reliant on exports, would benefit fr om a trade environment wh ere market signals, not subsidies, dictate outcomes.

A joint effort from these dairy giants could apply considerable pressure on regions that heavily subsidize their farmers, leading to overproduction and depression of global commodity prices. This collaborative approach could strengthen their stance in international trade forums and negotiations.

Such a partnership could denote a significant shift in dairy economics and geopolitical strategy, moving from bilateral competition to addressing systemic trade issues collaboratively. This strategic alignment could create a more equitable global trading environment, potentially reshaping international agricultural trade.