US offers to cut farm subsidies

The United States has offered to cut its agricultural subsidies by 60 per cent over a period of next five years as demanded by the G-20 developing nations and Britain in its bid to revive the Doha round of trade talks.

"To jump-start our stalled negotiations, the US is prepared to move, and move aggressively, by supporting a 60 per cent cut in "amber box" support -- the most distorting type of subsidies -- over the next five years," US Trade Representative Rob Portman wrote in an opinion piece in The Financial Times on Monday.

However, he said the US cannot take tough decisions alone and demanded similar cuts by European Union and Japan. He said the proposal was to be considered as part of Doha trade liberalisation process.

"This will require significant reforms to US farm programmes, said Portman adding greater cuts must be required by the European Union and Japan, which he said have much larger agricultural subsidies.

"All countries must also simultaneously deliver real market access," he said. Portman and other US trade officials are meeting their counterparts from the European Union, Brazil, India and a dozen other WTO members in Zurich on Monday.

"A ground breaking result in agriculture is not in and of itself a sufficient outcome," he said adding "there must also be complementary advances in trade in manufactured goods and services. The US is ready to make tough decisions on agriculture but we cannot do it alone."

Developing countries have said they were ready to give more access to industrial groups from developed countries only if they agree to reduce farm subsidies.