Agricultural export subsidies eliminated

Stuff reports:

Fonterra is hailing an agreement to eliminate all agricultural export subsidies at the World Trade Organisation talks in Nairobi as a “historic breakthrough”.

John Wilson, chairman of the dairy co-operative, said it was good news for New Zealand dairy farmers.

For years the use or the threat of export subsidies had pushed world dairy prices below their true level, he said.

“The Nairobi outcome takes global trade rules one essential step further towards a level playing field for dairy trade.”

It’s a good step forward. I’m not sure how widespread such subsidies were, but it is encouraging that agreement was reached to eliminate them.