The head of the CBI has called on western governments to "practice what they preach" over free trade.

Digby Jones urged European Union and Amercian authorities to agree to slash agricultural subsidies during the World Trade Organisation ministerial meeting currently underway in Cancun, Mexico.

"Now is the time for action if the goal of free and fair trade to the benefit of developing and developed countries is not to be jeopardised," he said.

Jones has joined the UK delegation in Cancun, where he will be advising the UK delegation on behalf of British business.

He called on trade ministers to "seize the moment" and warned the EU and US that they could jeopardise the negotiations unless they tell developing countries by how much they are prepared to cut agricultural subsidies.

"Agriculture has become the biggest single block to progress in the Doha development agenda which has the potential to benefit billions of people," he said.

"The EU and US will fail to win the case for global free and fair trade unless thy prove they can practice what they preach."

The CBI has also called for progress on rules on international investment and red tape.

Jones said there was a need for "an agreement that guarantees transparency" as part of a drive to combat corruption.

"£1 in every £20 spent on trade deals goes into paperwork or pockets and that is why we want to reduce trade red tape and improve procedures," he said.

"There is a huge amount to play for but the EU and US have got to lead by example. We will never persuade people of the benefits of free and fair trade unless they too share and feel the benefits."