Main policy areas
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Remarks
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Tariff quota administration
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- TRQs are applied in several important markets, including the EU,
United States, Canada and Japan;
- A major element of TRQ access for dairy products is country specific.
For example, the TRQ for butter imports to the EU is allocated to New
Zealand;
- Fill-rates for dairy TRQs (1995-99) averaged 65 percent.
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Tariffs
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- Tariffs in a number of developed countries in Western Europe, North
America and Japan - are set a very high levels, often in excess of 100
percent;
- Developing country tariffs are general low, or zero, exceptions are
the Republic of Korea and China.
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Market access
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- As there was no uniform methodology for calculating minimum access
for dairy products (in terms of product definitions), access to some
important markets is less than 5 percent;
- Some exporting countries have stressed the need to have a standardised
methodology for calculating minimum excess for dairy products in any
future round of negotiations.
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Amber box
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- Domestic support to dairy producers in North America, Western Europe
and Japan is viewed by low cost exporting countries as limiting access
to these markets and, in the first two instances, producing a surplus
which must rely on the use of subsidies in order to be exported;
- As an indication of the level of support given to dairy in many developed
countries, average PSEs for the sector amongst OECD members are
in the region of 55 percent;
- Domestic support provided in most developing countries, New Zealand,
Australia and eastern Europe is either low or no-existent.
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Export subsidies
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- The right to use export subsidies is mainly limited to countries
in Western Europe and North America. Historically, high internal prices
for milk have meant that such countries have had to reply on subsidies
to export dairy products;
- Subsidised sales account for approximately 30 percent of world dairy
trade;
- Canada has sought to develop a differential internal pricing system
to allow domestic milk for processing into export products to be purchased
by processors at world market prices (this system is the subject of
a WTO dispute panel);
- During the Uruguay Round implementation period, both the United Sates
and the European Union made use of roll-over provisions, whereby
unused volumes of subsidised exports were carried over from one year
to the next;
- Concerns that export subsidy limits might result in a substantial
increase in food-aid have proved unfounded.
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Export credits
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- Not important, as high-cost producing countries rely on exports subsidies
(see above)
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State trading enterprises
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- Since the 1980s, importing STE's have become progressively
less important;
- In New Zealand, the export industry has been reorganised and the
Marketing Board is no-longer a monopoly exporter of certain dairy products.
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Export restrictions and prohibitions
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- Almost non-existent - India has set some maximum limits on exports.
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Food security
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- This issue is not frequently raised for dairy.
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Food safety
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- At the national level, this is a very important and highly regulated
issue - within the WTO it has not been important, so far.
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Rural development
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- Increasing farm income, including dairy development, is an important
issue in many developing countries;
- Multi-functionality, including the role of dairy, important in some
OECD countries.
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Green box
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- This is not an important issue as research and other services to
the dairy industry are not production or trade distorting.
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Blue box
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- Not applicable to dairy, as EU support mechanisms to sector are not
based on direct aid payments; rather, on a production quota system supported
by subsidised storage, processing incentives and export subsidies.
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Geographical indications
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- Important - especially for European cheese.
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