The US is seeking an opening up of the banana market after the World Trade Organisation (WTO) ruled last year that EU import policies were discriminatory.

Nations from the British Commonwealth, particularly from the Caribbean and Africa, are favoured at the expense of Latin American nations, many of which have banana producers owned by US interests.

Now the US has firmly rejected a proposal to the WTO by EU external trade commissioner Sir Leon Brittan to try and speed up the resolution of the argument by instigating a three month settlement procedure.

US companies want their share

US special trade negotiator Peter Scher said the offer is not good enough, and demanded the EU react immediately to resolve the trade war.

He added that if the EU believed its banana import policies were right it would quickly "do everything possible to bring (the issue) to closure."

"For the EU to claim that there's simply not sufficient time (to resolve the dispute) stretches the bounds of hypocrisy," Mr Scher said.

Duty hike

The US has threatened to slap a 100% duty on EU products, effectively doubling their price.

It has promised to finalise a list of the products affected by the duty hike in mid-December.

EU food exports to the US are being targeted and include wine, cheese and pastries.

The duty is likely to result in a significant loss in sales.

Mr Scher said the US, while remaining open to negotiations, intended to go ahead with the sanctions, which could amount to $1bn (£606m).