The Australian government and the country's farmers have welcomed an agreement by ministers on the need to restart global trade talks but said it was crucial to make speedy progress.

Leading trade ministers agreed Saturday in Davos, Switzerland, on the importance of resuming the stalled Doha round talks that collapsed six months ago over differences on farm trade.

Trade Minister Warren Truss, in Switzerland for the meeting, said there were clear signs of life in the negotiations.

"There is a window of opportunity to make the necessary breakthroughs in the negotiations to achieve a satisfactory outcome for the round," he said in a statement.

Truss, who has been pushing for the United States to slash domestic farming subsidies and the EU to cut tariffs by a further five percent, said the next few months would be crucial.

"I am encouraged by the recent constructive engagement between the European Union and United States and that they both know they need to do more," he said.

National Farmers' Federation chief Ben Fargher also welcomed the development.

"If countries are coming back to the table in good faith then that's obviously very pleasing," Fargher told ABC radio.

"If there's going to be renewed impetus as a result of the Davos forum, that's very welcome.

"There's a certain window of opportunity for these negotiations to conclude now before various international elections and other things mean that we may be looking beyond 2010."

The Doha round was launched by WTO members in the Qatari capital in 2001 with the aim of reducing trade barriers for the benefit of poor countries.

But the World Trade Organisation suspended the round in July last year after negotiators from six major players, including the US, the EU, Brazil and India, failed to hammer out a framework for an accord after five years of