A new survey on agricultural subsidies shows that New Zealand remains out on a limb from most of the world in being largely subsidy-free.
Mike Petersen: "The WTO remains still vitally important to us." Photo: SUPPLIED
The Worldwatch Institute study reveals that the top 21 food-producing countries paid out an estimated $US486 billion in farming subsidies in 2012.
China is by far the biggest subsidiser, paying $US165 billion in 2012, mostly in price support payments to farmers to encourage the growth of staple crops such as rice and wheat.
Japan's subsidy bill was $65 billion, while the European Union spent more than $100 billion on price support payments and other subsidies. The United States spent more than $30 billion on various farm support payments.
New Zealand's special agricultural trade envoy, Mike Petersen, says that along with tariffs, agricultural subsidies are one of the biggest obstacles to free trade.
He says the World Trade Organisation Doha round of talks has been a big priority for New Zealand because it's the only forum that can bring relief in subsidies.
"Free trade agreements and agreements like TPP, the Trans-Pacific Partnership, won't address the level of subsidies," Mr Petersen says, "so that's why the WTO remains still vitally important to us."