In a major boost to Australian dairy farmers and dairy exports, the European Union has announced it will end its dairy export subsidies.
Trade Minister Simon Crean and Minister for Agriculture Tony Burke are now urging the United States to follow Europe's lead.
"Given that the US introduced dairy export subsidies in response to the EU introduction of subsidies, the US has no excuse to continue with this program," Mr Crean said.
The European Dairy Management Committee this week decided to reduce the level of export subsidy refunds on butter and butter oil to zero.
This means that export refunds for all dairy products are now set at zero.
The EU introduced diary export subsidies in January this year and this was followed by the US which in May introduced dairy export subsidies.
The US Dairy Export Incentive Program remains in place.
The EU decision comes after a rise in world dairy prices.
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