The European Union (EU) established a Common Organization for sugar in 1968, and accordingly applied subsidies to sugar under the price support system. However, the EU has been providing export subsidies in excess of its budgetary outlay and quantity commitment levels specified in the Schedule of 1995, thereby nullifying or impairing benefits expected to accrue to Australia, Brazil and Thailand under the Agreement on Agriculture. This case demonstrates the complexity of subsidies, in particular as more and more WTO members apply domestic subsidies for export purposes through cross-subsidization arrangements, which is one of the outstanding issues of this case. It should also be noted that there is a trend for WTO members to bring agricultural disputes that are related to resolving export subsidies to the WTO dispute settlement system.