The elimination of export subsidies for agricultural exports is being hailed by the Government as a major victory for New Zealand.
Trade Minister Todd McClay said the agreement of the WTO Nairobi package at the World Trade Organisation ministerial conference in Nairobi, Kenya, would be good news for New Zealand's agriculture exporters.
"The most important outcome for New Zealand is the agreement to eliminate the ability of WTO members to subsidise their agricultural exports," Mr McClay said.
"It's been illegal to subsidise the exports of industrial goods for more than half a century. It's a major achievement to at last extend that principle to agriculture.
"This has been a primary goal for successive New Zealand Governments for decades. This outcome directly benefits New Zealand agricultural exporters who have to compete in some markets with subsidised goods."
Failure to reach such an agreement at the Nairobi conference would have been "nothing short of disastrous" for the international trading system, Mr McClay said.
- by Nicholas Jones
