After a concerted campaign from countries like Australia and New Zealand, and a rise in world dairy prices, the European Union announced it would drop its damaging subsidies which were brought in from January to help buffer its dairy sector during the financial crisis and a depressed global market for milk.

But its actions were soon followed by the United States, and Australia is ramping up its opposition to have the subsidy end.

The US program for dairy export subsidies and its incentive program were reinstated in May 2009, and have been extended until June next year.

Over 100 bids have been accepted since the program was reintroduced in May, but for very small amounts.

Trade Minister Simon Crean and Minister for Agriculture, Tony Burke issued a joint statement following the decision on the weekend and said themove was good news for Australian dairy producers and another sign that protectionist measures were being wound back.

But they said the US now has "no excuse" to continue with its program.

Mr Crean told Rural Press that in the wake of the European announcement he would now be making stronger representations to the US administration to fall into line and stop its dairy export subsidies, which he's previously labelled "protectionist".

It will also be raised in Geneva when Ministers convene for trade talks later this week.

"I have instructed the Australian Embassy in Washington to raise our objections," Mr Crean said.

"More specifically, Australia wants an assurance that no further bids under the Dairy Export Incentive Program will be accepted by the US Department of Agriculture.

"I intend to personally raise the issue of on-going dairy subsidies with the US Trade Representative Ron Kirk later this week in Geneva when I see him.

"In Geneva, I will also be maintaining pressure on the Europeans not to revert to the use of export subsidies for dairy in the future

"The pressure is now on the US to follow the lead of the European Union.

"The last time we raised this issue with the US, their excuse was that they doing it in response to the Europeans. That excuse no longer exists. There is no excuse."