The continuing deadlock between the EU and the United States over European banana imports threatens at least £3 million (€3.80 million)- and possibly considerably more - of Irish exports to the US annually.

Companies exporting pork products, chandeliers, biscuits, bath preparations, knitwear and bed linen are among those likely to be affected, if the United States imposes 100 per cent tariffs - or special import taxes - from March 3rd.

The United States says it is entitled to impose sanctions on the EU because Brussels failed to comply with a World Trade Organisation (WTO) ruling that the EU banana importing regime discriminated against the United States.

World Trade Organisation member-states yesterday called a two-day "time-out" in the row, with the next meeting scheduled for tomorrow, in the hope that a heightening of the conflict can be avoided.

At the same time, WTO director-general, Mr Renato Ruggiero said that if both powers avoided confrontation and took a constructive approach, they could find a graceful exit from an impasse in which they have been locked for weeks.

The United States believes the EU gives preferential access to producers in Africa, the Caribbean and Pacific - several of them former French and British colonies - and puts Latin American producers, which are dominated by US groups, at a disadvantage.

Across the EU, approximately £400 million (€510 million) worth of exports could be jeopardised. The Department of Enterprise, Trade and Employment estimates that £3 million of Irish exports are at risk in a year.

However, An Bord Bia said yesterday it believed all Irish pork products to the US could be under threat and this would mean up to £7 million of exports per annum could be affected, if the tariffs are imposed.

If such a scenario, the main loser would be Dairygold which is the largest exporter to the United States. A spokeswoman for the company would not comment yesterday on the issue.

The main producer of chandeliers in the Republic is Waterford Crystal. A spokesman for the company said exports of chandeliers to the United States were insignificant.

According to An Bord Bia, biscuits form part of the American list and this would be a concern to Irish Biscuits, which is understood to do £500,000 of business in America each year.

Meanwhile, R & A Bailey, the producers of Bailey's Irish Cream, which feared their sales in one of their key markets would be hit hard by inclusion on the list has discovered that it will not now be so threatened. Its name does not appear on the latest documents.

Mr Owen Brooks, director of international markets for An Bord Bia, said the pork situation was the most worrying. "While the United States is not a huge market, the sector is already going through a bad time and to lose the United States would be a another blow."

He added that trade negotiations "tend to go down to the wire" and it was hard at this stage to assess whether the Americans would follow through on the tariff threat.

He said An Bord Bia was worried that relationships with US customers might be affected by the row. "Those US companies which deal with European supplies might choose another supplier if they believe 100 per cent tariffs will be imposed on EU goods," he said.

Yesterday, talks between EU and US representatives at the Geneva-based WTO ran into stalemate, with the US insisting on imposing trade sanctions despite opposition from three WTO member-states.

A WTO spokesman said that the US ambassador to the organisation, Ms Rita Hayes, was persisting with demands that WTO authorisation be given for the United States to impose the tariffs.

While Irish exports in certain sectors are in doubt in the short term, the bigger worry is if the tariff issue becomes a trade war.