A DAIRY farmer-funded US export subsidy program has doubled its funds.
And it targets Australian markets such as Japan.
The Australian Dairy Industry Council expressed «disappointment» this morning that the US Cooperatives Working Together body would now have US$60 million a year funding to subsidise export markets.
«It is disappointing that American milk producers feel the need to subsidise their dairy product exports and will not compete on a level playing field,» ADIC chairman Noel Campbell said.
«The CWT subsidies program is targeting key Australian markets in Asia, such as Japan, and under-cutting efficiently-produced Australian product in these markets,» said Mr Campbell.
«Activity of this type only reinforces the need for Australia to sign key Free Trade Agreements such as those being negotiated with Japan, China and Korea to assist in ensuring a more level playing field.»
The CWT export subsidies program uses a levy drawn from about 70 per cent of total US milk production for subsidising product entry into export markets.
The CWT is not aligned with the US government which allows it to side-step existing WTO rules and restrictions on export subsidies, according to ADIC.
The ADIC and Dairy Australia are examining legal options in relation to this case and working with industry and government on other avenues.
Japan represents about 25 per cent of the broader $2 billion/year Asian market for the Australian dairy industry.
Source: Weekly Times