The prospect of a trade war between the European Union and the United States still looms, after the failure of their latest attempt to settle a dispute over banana imports.

Neither side indicated any willingness to make concessions at talks in Geneva.

But they both indicated that the door remained open to further contacts.

The Americans are threatening to impose more than a billion dollars' worth of sanctions against European imports by the middle of December.

They want the Europeans to end their preferential terms for Caribbean banana imports.

The EU says it will not negotiate under duress, and says it will take the United States to the World Trade Organisation.