Europe's decision to reform the Common Agricultural Policy has boosted the chances of a world trade deal, Patricia Hewitt has said.

Speaking in the Commons on Thursday, the trade secretary said that moves to reduce trade barriers could make a huge contribution to slashing global poverty.

Last week European Union agriculture ministers agreed plans to partially decouple subsidies from food production.

The move is expected to ease difficult talks at the World Trade Organisation's ministerial meeting in Cancun this September.

Hewitt said that the "very big step forward" on CAP reform would increase the chances of a wide ranging agreement.

"There is of course much else still to be done, not least by the United States, but last week's deal in the agriculture council removes one of the biggest barriers on the road to Cancun," she told MPs.

But Conservative trade spokesman Michael Fabricant warned that there would be no reforms until 2013.

He said that the "menace" of subsidies should be removed across the board.

Hewitt responded that the British government "had led the way arguing successfully for reform of the Common Agricultural Policy" and welcomed Iain Duncan Smith's "conversion" to the cause of fair trade.

The trade secretary also said that the government was determined to make the current round of trade talks work to the benefit of poorer countries.

"If we could halve the level of protectionism and trade barriers globally, we could cut the number of people in the developing world living in poverty by over 300 million by 2015," she said.