AUSTRALIA'S farm and political leaders have slammed the US for hypocrisy over its re-introduction of dairy export subsidies.

Trade Minister Simon Crean said the move ran "completely contrary" to previous US statements on the need to avoid protectionism.

"It is just outrageous," he said. "It's contrary to what the US has been supporting on the global financial crisis and what's on the table at the talks on world trade reform."

In February, US President Barack Obama, commenting on the Congress plan for a "buy American" clause in the US fiscal stimulus package, said: "I think it would be a mistake, at a time when world-wide trade is declining, for us to start sending a message that somehow we're just looking after ourselves and not concerned with world trade."

Last month, President Obama spoke favourably of the communique by the world's top 20 economies, the G20, on the global financial crisis.

"We pledged to avoid the trade barriers and protectionism that hurt us all in the end," he said.

Also last month, the US Consul-General to Australia, Michael Thurston, told the Rural Press Club of Victoria "protectionism is not the way ahead".

Announcing the US subsidy move, US agriculture secretary Tom Vilsack said it was consistent with world trade rules and the US was "strongly committed" to refraining from protectionist measures.

But National Farmers' Federation president David Crombie said the US subsidy move was "total hypocrisy".

"I think the whole world will be disappointed at this blatant display of hypocrisy," Mr Crombie said.

"The US has talked on a number of occasions about supporting open trade and this is certainly a step back from that rhetoric."

Mr Crombie said both the US and the EU had shown a lack of leadership on trade and had set back the free-trade agenda by reverting to "regrettable" short-term protectionism.

"They talk about the need to keep trade flows open to deal with the global financial crisis and world food shortages, then they do this sort of thing," he said.

Australian Dairy Industry Council chairman Allan Burgess said he was annoyed with the double-speak of the US.

"We're very frustrated. What in the hell's going on here?" he said.

"They're taking these short-term protectionist measures at the same time as they talk about getting world trade going."

United Dairyfarmers of Victoria president Doug Chant said President Obama had said early in his term he didn't support subsidies.