WTO members criticize U.S. decision to reintroduce dairy export subsidies
www.chinaview.cn 2009-05-28 06:51:37   Print

    GENEVA, May 27 (Xinhua) -- A number of WTO members on Wednesday criticized a recent U.S. decision to reintroduce dairy export subsidies, saying it was a "backwards step" which once followed by others could undermine the multilateral trading system.

    "This unfortunate decision by the U.S. follows that of the EU to reintroduce export refunds for a number of agricultural products," said a statement issued by the Cairns Group, a coalition of 19 agricultural exporting countries.

    The group, which includes countries like Australia, Canada, New Zealand, Indonesia and South Africa, said it was "extremely disappointed" by the U.S. measure.

    "If other economies follow the example set by the U.S. and the EU and raise tariffs, domestic support and export subsidies towards their maximum WTO commitment levels, it would undermine the effectiveness and credibility of the WTO system," said the statement issued during a WTO meeting.

    The group also called on the United States and the EU "to review their decisions with a view to withdrawing these export subsidies within the shortest timeframe."

    "Both need to specify a clear and early date for the removal of these subsidies in order to help restore confidence in agricultural markets," it said.

    Earlier at the WTO meeting, a group of some 20 developing countries also criticized the U.S. decision to reintroduce dairy export subsidies, as announced by the U.S. Department of Agriculture last Friday.

    The measure shows the rising of "murky protectionism," not directly violating WTO obligations and yet potentially weakening the WTO system at a time of economic crisis, said the group, which includes countries like Brazil, India and China.

    "It is a worrisome sign that the U.S. decision follows a similar decision by the EU to reintroduce export subsidies. These examples, if emulated by other developed countries, will contribute to aggravate significantly the world economic situation and its hardship on the developing world," the group said. 

Editor: Mu Xuequan
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