Abstract
Trading of agricultural products is on the increasing in the global market. In a quite a few countries (mainly third world countries), agriculture is the dominant sector of the economy and plays a very important role. To control the trade of agricultural products and to limit unfair practices, international negotiations have been set up. After the creation of the World Trade Organisation (WTO), the Agreement on Agriculture had been affirmed with a set of governing rules and regulations. The main objective of that agreement was to limit domestic support, export subsidies and to give a better access to market. In 2002, European Union was accused by Brazil (followed by Australia and Thailand) of not following these rules in the sugar market. Indeed, the European Union promotes its own products through its subsidies, which distorts the market. The WTO concludes that European Union is in violation with the Agreement on Agriculture and has to stop such practices before 2007.
