AFP - A deal to end Europe's long-running trade war over taxes on banana imports will not come before World Trade Organization talks next week in Switzerland, an informed source said Wednesday.

Agreement over tariffs imposed by Brussels on Latin American banana producers "will more likely come after ministers meet" in Geneva from Monday to Wednesday, the source told AFP.

The Latin American producers feel penalised by the tariff-free treatment of imports from mostly poor former European colonies in the Africa, Caribbean and Pacific region (ACP).

"We're still very close to a deal," said the source, referring to negotiations led by outgoing European Union Trade Commissioner Catherine Ashton, who has cancelled a number of engagements since being nominated for the role of EU foreign affairs chief.

"All the parameters are in place (but) we are still finalising the elements (and) it isn't easy.

"We thought it would be done before Geneva, but that will be difficult."

WTO member states have been trying since 2001 to forge a global trade pact under the Doha Round of negotiations -- with the EU banana war coming to symbolise the difficulties it faced down the years.

The Doha talks have largely stalled since July 2008, but diplomats in Geneva said last week that a deal on bananas was in sight after Latin American banana producing countries agreed to an EU offer to cut the tariffs.

All that stands in the way of an end to the dispute is agreement between Brussels and African-Caribbean-Pacific (ACP) countries on how they could be compensated for the competitive advantage that would be eroded once Latin American bananas benefit from lower tariffs.

According to an internal European Commission memo obtained by AFP last week, ACP countries would be paid up to 190 million euros (284 million dollars) over four years to help them cope with the tariff changes.

But ACP countries are still not satisfied, with representatives saying the tariff cuts were too deep and ACP banana producers asking for financial aid of 250 million euros to cope with the changes.

The negotiations are "stuck on several points," notably compensation, but also "over discussions with the United States," the source underlined.