TAIPEI (AFP) - Taiwan and the United States may resume trade talks at the end of the year after the island agreed to boost US beef imports, removing a key obstacle to renewed negotiations, local media said Monday.

Discussions under the Trade and Investment Framework Agreement, a crucial channel for bilateral economic issues, were stalled in 2007 over Taiwan's refusal to allow American beef on the bone over mad cow disease fears.

"Allowing import of beef on the bone from the United States has paved the way for a resumption of the talks," the United Daily News reported, citing unnamed officials.

The paper said the two sides could return to the negotiating table at the end of this year, and no later than March or April 2010.

The economics ministry declined to comment on the report directly when contacted by AFP Monday, but it said Taiwan hoped talks will resume soon.

"The United States is one of Taiwan's most important trading partners. We are glad to see bilateral ties improve further," a ministry spokesman told AFP.

Taiwan announced last week it would allow imports of US beef on the bone in a controversial move criticised by some lawmakers and activists for ignoring the concerns over mad cow disease.

Taiwan and the United States signed the Trade and Investment Framework Agreement in 1994 as a means of solving bilateral trade issues.

In the first nine months of 2009, Taiwan's exports to the United States totalled 16.9 billion US dollars, accounting for 11.8 percent of the island's total shipments.