But Brazil, acting as an unofficial spokesman for the developing countries, said the US offer to cut aid to its farmers to 15 billion dollars a year was still too high.

And there was no immediate solution in sight to the long-running dispute over bananas that threatens to derail the talks on a new global trade pact.

EU officials in Geneva said they hoped to have contact with some of the banana producing countries to see what prospects there are for working together, but no formal negotiations were scheduled.

But the head of the WTO Pascal Lamy, is urging compromise on the part of the delegates in Geneva.