12/19/05 Dairy`s take on Doha

No matter what has transpired at the just concluded World Trade Organization ministerial in Hong Kong, one thing is certain. The U.S. dairy industry has its full support for increasing market access. Now what is unique about that position is that just a decade ago, our nation's milk and dairy industry stayed away from the W.T.O.'s Uruguay round and discussions on ag trade reform issues. So why has there been a change in the industry's stand from over ten years ago? There are several reasons. It starts with various trade reform proposals that range from the European Union's offer to phase out export subsidies, to proposals by some Asian nations like Japan and China to lower import barriers. That talk is enticing to Tom Camerlo. He's the Chair of the Dairy Farmers of America. And he recently represented that organization as well as the U.S. Dairy Export Federation and Agricultural Policy Advisory Committee during the Hong Kong ministerial. CAMERLO: It has been heartening to see the support of many countries for a tariff cap & a cap to limit the ability of countries to maintain outrageously high duty levels. We hope that despite the resistance by some to this proposal that it becomes part of the final text due to its grave importance. What Camerlo means is that his industry opposes deals like those offered by nations such as the European Union, and favors the U.S. proposal to offer as much as a sixty per cent cut in key U.S. subsidies, like those in the dairy industry, in exchange for increased market access. Understand that U.S. dairy producers and processors are among the most protected ag industries in terms of subsidies and tariffs. But it is the industry's increased interest to see market access improved, especially to balance the elimination or reduction of federal programs like the Milk Income Loss Contract program that is driving dairy's embrace for a beneficial trade deal in the W.T.O. CAMERLO: Any specific treatment to a foreign countries' dairy sector would be unacceptable if that special consideration is not provided to the U.S. dairy producer. The Doha Round remains the single best shot we have in trying to improve the situation our industry faces both at home and abroad. In fact, global dairy analysts from U.S. competitors such as Australia and New Zealand say with a little trade liberalization and ending of current subsidies, the American dairy industry could become a price setter for the world dairy market.