Europe’s Trade Commissioner Peter Mandelson today offered huge farm concessions in the world trade talks - including cuts of up to 60 per cent in the EU’s highest agriculture import tariffs.

The move came a day after French President Jacques Chirac warned he would scupper the so-called Doha Round rather than let Mr Mandelson negotiate away the Common Agriculture Policy.

But Mr Mandelson insisted today that the new deal on the table was within his mandate as Trade Commissioner - "although it goes to the outer limits of that mandate".

A fortnight ago France called emergency talks to try to clip Mr Mandelson’s wings, and warn him he had gone beyond his brief in the Doha Round concessions he was offering on behalf of the 25 member states.

The Trade Commissioner emerged unscathed, with his mandate reconfirmed by a majority of ministers.

Then yesterday President Chirac used the Hampton Court summit to complain once more that Mr Mandelson was exceeding his brief and that Paris would not tolerate giving up its traditional CAP benefits.

President Chirac is also under pressure from Tony Blair to put EU farm subsidies up for grabs in return for British EU budget rebate concessions in separate negotiations on future European spending.

Today Mr Mandelson turned the screw, insisting his new offer was still within his mandate - "although it goes to the outer limit of that mandate" - and challenged President Chirac to justify his claim.

He rejected claims that he was ignoring French concerns: "Not only is France an important, weighty and influential member of the EU, it is strongly committed to world development and eradicating poverty," he said.

He acknowledged France's "sensitivities", but added: "I look forward to being able to demonstrate convincingly to France that we are negotiating what is in France’s best interests".

The new deal on the table in the world trade talks includes a 60 per cent cut in the highest rate of EU farm import tariffs, and a range of cuts between 35 per cent and 60 per cent for lower tariffs. On average tariffs would be cut by nearly a half, with levies reduced from 22.8 per cent to 12.2 per cent.

Mr Mandelson said that it was a substantial and genuine offer from the EU. "There was a suggestion by France that the proposals we are making are outside the Commission’s negotiating mandate. It is a matter for France to make that claim and sustain it.

"We are quite sure that the undertakings the EU has offered are within the terms of the 2003 CAP reform."

He refused to comment on what the French ambassador to the EU had said when the new proposals were put to the 25 EU ambassadors early today, but acknowledged it would have been unusual if the French ambassador had not referred to President Chirac’s threat to block a world trade deal if he did not like the contents.

Mr Mandelson said that the deal now on the table from the EU side was the EU’s "bottom line" and was contingent on the US, Brazil, India and Australia now showing similar compromise in other key areas such as industrial goods and services.

"The EU’s offer is substantial, offering new market access in agriculture and driving down trade-distorting farm subsidies.

"We want to move in a way that is tolerable for the EU’s reforming agricultural sector. Europe’s major partners need to understand that this offer is conditional on immediate movement in negotiations on trade in industrial goods and services.

"Those areas are important in Europe and to developing countries and provide the route to a balanced Doha outcome".

The parties are struggling to reach a deal on the all-important agriculture dossier in the Doha round of trade liberalisation talks in time for a meeting of the World Trade Organisation (WTO) in Hong Kong from December 13-18.

WTO officials have warned that the talks are close to breaking point, and that the EU must quickly resolve its bitter internal rift over farm subsidies or convince its trading partners to reduce their own demands on agriculture.

A deal in Hong Kong does not require unanimous WTO backing, but opposition by France could deal a potentially devastating blow to the round, aimed at benefiting poorer countries and scheduled to be wrapped up by the end of 2006.

Explore Economics

• Pre-Budget Report 2008

• Budget 2009

• World Economic Forum

• The Times MPC

Times Recommends

• C&G axed - 1,660 jobs to be lost
• UK house prices rise 1.1% as buyers return
• Mixed reaction to US banks repaying bailouts