By LIAM DANN
Fonterra has found an unlikely ally in the Dairy Farmers of America (DFA), the world's largest dairy co-operative.
DFA chairman Tom Camerlo, visiting New Zealand last week, told local farmers that his organisation was opposed to any US free- trade agreement with Australia.
"We bitterly oppose opening trade talks
with Australia. The US dairy industry has absolutely nothing to gain from those talks," he said.
"We think it's a serious mistake on the part of the Administration."
Camerlo would not comment on the role of the Iraq war on trade talks, but admitted that politics could be a frustration.
"We believe that the trade talks should focus fully on the WTO," he said.
The DFA is working closely with US Government officials and supports lower tariffs and the abolition of subsidies for dairy products.
It was a promising stance, said Fonterra chief executive Craig Norgate. "It just shows we're not as far apart as people think."
Fonterra and the DFA have a 50/50 joint venture company, Dairy Concepts, operating in the US. They are working closely to develop new products and new markets in North America and Asia.
Fonterra is the world's second- largest co-operative with 12,600 shareholders. The DFA has 24,000 members.
The DFA remains ideologically opposed to "free trade", but has adopted a policy to push for what it calls "fair trade".
"We absolutely don't want the US market open at all without Canada, Japan, Europe, Korea and Europe opening their market the same way," Camerlo said.
"What angers us is the highest tariff we have in dairy in the US is 50 per cent. Canada is over 300 per cent. Europe, Japan and Korea all have considerably higher tariffs than the US. The US position is to reduce all tariffs to 25 per cent."
Camerlo was hopeful progress would be made at Doha.
"Reduce them all in this round so everyone's on a level playing field."
The US had some subsidies on cheese, butter and powder exports but nothing compared to the Europeans, he said.
