WTO Director-General Pascal Lamy was commenting on EU trade chief Peter Mandelson's offer to cut farm tariffs by an average of 46 percent in time for the WTO summit in December in Hong Kong.

The EU trade commissioner had made "a serious offer that merited serious discussion," Lamy said on the private French television station LCI.

The US, Canada and Australia have already said they are disappointed by the EU's offer to cut its highest farm tariffs by 60 percent and lower tariffs by 35-60 percent, almost halving the overall tariff rate from around 23 percent to 12 percent.

Nevertheless Lamy was upbeat, saying "the Europeans and the Americans are now showing movement on agriculture questions."

"It's very good news for developing countries," he said. "It will unblock remaining negotiations."

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

The new European offer was conditional on the EU's main negotiating partners -- the United States, Brazil, India and Australia -- responding constructively, notably on industrial goods, services and development.

Lamy declined to comment on a threat by France to veto any agreement at the forthcoming summit.

Agricultural subsidies have proved a bone of contention among EU member states with French President Jacques Chirac warning on Thursday: "We have a clear and simple position which is the full respect of the (EU) Common Agriculture Policy as it was modified in 2003," he said.