European Union agriculture ministers yesterday bolstered the EU's negotiating stance in world trade talks by agreeing the first significant cut in European sugar subsidies in almost four decades.

After three days of negotiations, the ministers decided to phase in over four years a 36 per cent cut in the EU's guaranteed sugar price - rather than a reduction of 39 per cent over two years as initially envisaged - and a more generous compensation scheme for inefficient European sugar producers who will be forced to halt production because of the price drop.