Another dispute brewing this summer concerns U.S. export subsidies to milk which were reintroduced in May 2009, following a similar move by the European Union in January. The U.S. and the EU have argued that they will not exceed their WTO commitments on export subsidies; nonetheless, the subsidies have drawn criticism from the Cairns group of agriculture exporting countries.
  
The Cairns Group, a coalition of 19 agricultural exporting countries, issued a statement in June  arguing that while the U.S. and EU milk subsidies might be legal under the WTO rules, if other economies follow suit and raise their “domestic support and export subsidies towards their maximum WTO commitment levels, it would undermine the effectiveness and credibility of the WTO system.”

“Subsidy wars only drive prices even lower, thereby delaying economic recovery further,” warned the Group.

The Mexican Frente Nacional de Productores y Consumidores de Leche (National Front of Producers and Consumers of Milk), a group representing Mexican milk producers, has also lashed out at the U.S. support for its dairy producers. According to the group a combination of U.S. subsidies and removal of tariffs under the North American Free Trade Agreement provisions has resulted in U.S. milk being sold in Mexico below cost, in violation of WTO rules on dumping.

According to Mexican news agency Notimex, the National Front is currently discussing with members of the Mexican Senate whether to launch a WTO complaint against the United States.