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« EU loses a landmark sugar case at the WTO », by SAPA-AP & Blomberg, business Report, 29 April 2005

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Wem marketing
ESC Grenoble

About the document

Published date
documents in English
9 pages
6 times
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  1. Executive summary
  2. Introduction
  3. The agriculture industry
    1. The trade of agricultural products
    2. Commercial policies before the institution of the World Trade Organisation
    3. Agricultural negotiations of the Uruguay Round
    4. The agreement on agriculture
  4. Sugar case
    1. The complaint
    2. WTO's reaction
    3. Consequences
  5. Conclusion
  6. Bibliography

The trade of agricultural products is increasing a lot all over the world. In many countries (mainly the poorest ones), 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 for years. After the creation of the World Trade Organisation, the Agreement on Agriculture had been firmed, setting many rules on that market. The main objective of that agreement is 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 on the sugar market. Indeed, European Union promotes its own products thanks to subsidies, which distorts the market. The WTO concludes that European Union is in violation with the Agreement on Agriculture and has to stop those practices before 2007. If not, sanctions will be taken against European Union.

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