Subsidies prevent farmers in the third world from competing in local and export markets, thereby creating third world poverty. This line of reasoning is increasingly used as the main opposition to subsidies, as exemplified by the 2003 Cancun WTO ministerial conference, where 22 third-world nations strongly argued against agriculture subsidies in US and Europe. Their complaint is that the first world talks about
free trade (wikipedia.org) and
free markets (wikipedia.org), but does not implement them when their agriculture products are subject to competition by cheaper products from the third world. In April 2004, the
WTO (wikipedia.org) ruled that $3 billion in US cotton subsidies violate trade agreements and that almost 50% of EU sugar exports are illegal.