The European Union and the USA will soon begin formal talks on a free trade agreement, paving the way for the biggest trade deal in history. The two trading blocs currently account for around half the world's economic output. European Commission President Jose Manuel Barroso said discussions could start by the end of June. The talks will involve rounds of negotiations on the many sticking points between the two economic powerhouses. Europe is likely to want greater access to many key American industries such as telecommunications and transport. The USA forbids foreign ownership of these. The USA will want more involvement in European agriculture, which may not please EU farmers.

EU-US trade is presently worth around €455 billion / $613 billion a year. Estimates are that a trade deal could boost their annual GDP by 0.5%. Mr Barroso said: "A future deal between the world's two most important economic powers will be a game-changer, giving a strong boost to our economies on both sides of the Atlantic." He added: "These negotiations will set a standard…for the development of global trade rules." US President Barack Obama was equally enthusiastic about a deal, which he spoke about in his State of the Union address to the US Congress on Tuesday. He said an agreement would, "boost American exports, support American jobs and level the playing field in the growing markets of Asia".