WTO deal resolves row over subsidies

Canada US and New Zealand dairies are celebrating after Canada agreed to halve its exports of subsidised cheese and lift import barriers.
The agreement with the World Trade Organisation means Canada will scale down a dual pricing system under which processors pay more for milk used domestically than they do for milk for export.
The Canadian government has resisted pressure to abandon the system since its adoption in 1995, claiming it is not a subsidy. However, the payment structure has consistently angered Canada’s rivals on the world market.
Under the terms of the WTO agreement, Canada will limit exports of cheese made from discount milk to no more than 9,076 tonnes during the next marketing year (starts 1 August). It will also abide by export subsidy limits for all dairy products and remove its value restrictions on imports of fresh milk.
Chile is set to slap a 21% tariff surcharge on imports of powdered milk from the USA and European Union. The government said milk producers had requested the surcharge, arguing that the USA and EU heavily subsidised exports.