Failure to reform Europe's agriculture subsidies will put global trade talks at risk, a committee of peers has concluded.

Senior members of the Lords said that attempts by the World Trade Organisation to liberalise agriculture tariffs and rules could be hampered unless the EU commits to far-reaching reform of the Common Agricultural Policy.

Members of the Lords' EU committee concluded that some countries are refusing to accept the crippling impact CAP subsidies are having on developing countries.

The report highlights that Europe spends around £18.5 billion a year on direct subsidies to farmers - some 12 times that spent on aid to developing countries.

Peers urged the European Commission to urgently consider proposals to reform the markets for dairy and sugar.

Lord Selborne, who chaired the inquiry, slammed the approach of some EU countries and the commission.

"The complacent attitude of some member states to the crippling effects of the Common Agricultural Policy on developing countries is deplorable," he said.

"The commission makes a lot of noise about its commitment to fairer international trade yet its current proposals for CAP reform won't assist progress at the WTO trade liberalisation talks."