NZ farm lobby critical of plan to shore up US counterparts

WELLINGTON: Federated Farmers is dismayed at a $US12 billion ($NZ16.16 billion) plan to shield American farmers from fallout in a trade war with China.

The Trump administration said it would use a Great Depressionera programme to pay up to $12 billion to help United States farmers.

The relief package is intended as a temporary boost to farmers as the US and China negotiate over trade issues, officials said.

It is a clear signal US President Donald Trump is determined to stick with tariffs as his weapon of choice in the conflict.

Federated Farmers said that when large countries battled each other on trade, there was a risk of small countries getting caught in the crossfire.

It said it worked best for trading nations such as New Zealand when everyone agreed on the rules of international commerce, and uncertainty caused by trading disputes was the last thing farmers needed.

Federated Farmers vicepresident Andrew Hoggard said the conflict was a worry for trad ing countries such as New Zealand which depended on a consistent rulesbased trading system.

Mr Trump, speaking at an event in Kansas City on Tuesday, reaffirmed his support for tariffs and pledged that ‘‘farmers will be the biggest beneficiary’’.

‘‘Just be a little patient,’’ Mr Trump said.