CANBERRA, Sept 21: The United States said on Thursday it could offer bigger cuts in farm subsidies to try to kick-start stalled world trade talks, but wanted the EU to match it by increasing its offer on tariff cuts.

US Trade Representative Susan Schwab said her nation was still open to negotiations on farm subsidies in the World Trade Organisation's Doha round of trade talks, which were suspended in July due to differences over agricultural trade liberalisation.

“We've ... indicated that our proposal is negotiable,” Australia's domestic news agency AAP quoted Schwab as telling reporters in the northern city of Cairns.

“We are even prepared to do even more in terms of cutting domestic support than we have on the table, if and when there is significantly more market access on the table in agriculture.” Schwab and US Agriculture Secretary Mike Johanns are in Australia for the 20th anniversary summit of the Cairns group of 18 agricultural exporting nations, who are pushing to open world trade in agriculture.The Doha round of trade talks was suspended after the major trading powers failed to agree on agricultural trade, with the European Union and the United States blaming each other for refusing to make enough concessions.

Australian Trade Minister Mark Vaile has proposed a “five and five” plan to restart the Doha talks, suggesting the United States cut farm subsidies by a further $5 billion and urging the EU to cut agricultural tariffs by another five per cent.

The EU's trade negotiator Peter Mandelson has rejected the Australian plan, and decided not to attend the Cairns meeting.

EU's WTO ambassador Carlo Trojan said it was up to the United States to offer significant cuts to its farm subsidies.

The WTO launched the Doha Round in 2001 to try to free up trade in what has been billed as a once-in-a-generation chance to inject up to $300 billion a year into the world economy and raise millions of people out of poverty.

The Cairns group comprises Argentina, Australia, Bolivia, Brazil, Canada, Chile, Colombia, Costa Rica, Guatemala, Indonesia, Malaysia, New Zealand, Pakistan, Paraguay, the Philippines, South Africa, Thailand and Uruguay.—Reuters