US ready to cut farm subsidies

The United States is ready to cut its ceiling for trade-distorting farm subsidies to $15 billion a year to help unblock talks for a global trade deal, US Trade Representative Susan Schwab said yesterday.

The long-awaited offer was contingent on other partners at the World Trade Organization (WTO), including Brazil, and India, making offers to open up their markets for agricultural and industrial goods, Schwab said.

The United States currently has a limit on subsidies which stands at more than $48 billion, although actual payments last year were only around $7 billion because soaring food prices meant US farmers were in less need of support.