WELLINGTON: Australia and New Zealand yesterday condemned a US decision to reintroduce export subsidies on dairy products as a step toward trade protectionism.

The move under the US Dairy Export Incentive Program followed the European Union's reintroduction of export subsidies in January, US Agriculture Secretary Tom Vilsack said Saturday, saying it applied to 102,000 US tons (91,000 metric tons) of mainly milk powder, butter and cheese.

"Our measured response is fully consistent with our WTO (World Trade Organization) commitments and we will make every attempt to minimize the impact on nonsubsidizing foreign suppliers," he said in a statement.