The ministers said the decision was good news for Australian dairy producers and another sign that protectionist measures were being wound back.
Crean and Burke urged the US to do the 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 programme,” said the trade minister.
“The EU decision is good news for Australian dairy producers, but the next step is for the US to also end dairy export subsidies,” added Burke.
The European Dairy Management Committee 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 US, 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. 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.
Source: Australian Trade Ministry
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