New Zealand has attacked Canada over its introduction of new subsidies for Canadian milk producers.

New Zealand diplomats at the WTO today (26 September) claimed the subsidies could "impede its exports" to Canada.

Wellington's concern focuses on changes to Canada's complex "special milk classes" system, where subsidies are paid for domestically-sold milk. New Zealand has long argued these payments hinder its Canadian milk sales.

A long-running WTO disputes case ended with a 2003 order to Canada to reform aspects of the system.

Canadian diplomats insist the payments do not "constitute subsidies" under WTO rules, and so were effectively unlimited.