World trade deal on food 'will save British families £200 a year', claims Brown

British families could be saved £200 a year on the cost of food under a world trade deal that could be struck within days, Gordon Brown said last night.

The Prime Minister appeared increasingly confident that world leaders are ready to end seven years of deadlock by opening up international markets and breaking down barriers to trade that have helped fuel spiralling prices.

According to the latest figures, a dozen large eggs that cost £1.79 a year ago now cost £2.66--up 48 per cent.

A 250g packet of butter cost 77p a year ago but now costs £1.00--up 30 per cent.

A loaf of bread cost 90p a year ago, but now costs £1.16--up 29 per cent.

A pint of milk was 35p a year ago but is now 41p--up 17 per cent.

Mr Brown, speaking at the close of the G8 summit on the Japanese island of Hokkaido, warned that the window of opportunity for a trade agreement that could help bring prices down was 'small and it is closing'.

He said crunch talks called by the World Trade Organisation in Geneva on July 21 would represent the final chance for a deal, possibly for several years.

The Prime Minister said the world stood at a 'minute to midnight' in terms of the chance of agreement.

He insisted it was vital that at a time of global economic turmoil and high food prices that all nations agreed to open markets and boost trade, rather than resorting to protectionism.

'The benefits to British citizens of a trade deal could make us £200 a year better off, each household,' he said.

Spiralling prices:  The cost of food has rapidly increased with a dozen large eggs that cost £1.79 a year ago now cost £2.66 - up 48 per cent (posed by models)

'The time for technical negotiations is drawing to an end.

'The key decisions are now political ones. We must act decisively now. If we don't, we will be failing the world's poor and destroying the best basis for continued economic growth in the future.

'The cost of failure is simply too great.'

The WTO has been desperately battling to conclude its latest round of free trade talks, which began in 2001.

It believes it would help alleviate poverty in developing countries, while richer countries such as Britain could also benefit if they can sell more goods and services abroad.

The talks have repeatedly faltered over the amount of state aid given to industries in Western countries, including the US and EU member states.

Developed countries, meanwhile, object to to restrictive industrial tariffs in fast-growing markets such as China and Brazil.