Both New Zealand and the United States have historically been advocates for a free and open agricultural trading environment. The article points out that New Zealand’s dairy sector, which operates without significant government subsidies, is a strong example of a market-oriented system. Likewise, many in the US agricultural sector, especially those who rely heavily on exports, would benefit from a level playing field where market signals, not government handouts, dictate production and trade.

The piece suggests that a joint effort between these two major dairy exporters could put significant pressure on regions that rely heavily on subsidies to support their farmers. These subsidies can lead to overproduction, depressing global commodity prices and making it difficult for producers in non-subsidized countries to compete. A collaborative approach would add weight to their arguments in international trade forums and negotiations.

This potential alliance would mark a shift in dairy economics and geopolitical strategy. Instead of focusing solely on bilateral competition, the two nations could work together to address a systemic issue that affects them both. For New Zealand, in particular, teaming up with a global economic superpower like the US would amplify its message and provide a much stronger platform for its long-standing opposition to trade-distorting policies.