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The European Union and USA will soon begin formal talks on free trade agreement, paving way for biggest trade deal in history. two trading blocs currently account for around half world's economic output. European Commission President Jose Manuel Barroso said discussions could start by end of June. The talks will involve rounds of negotiations on many sticking points between 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 trade deal could boost their annual GDP by 0.5%. Mr Barroso said: " future deal between world's two most important economic powers will be game-changer, giving strong boost to our economies on both sides of Atlantic." He added: "These negotiations will set standard…for development of global trade rules." US President Barack Obama was equally enthusiastic about deal, which he spoke about in his State of the Union address to US Congress on Tuesday. He said agreement would, "boost American exports, support American jobs and level playing field in growing markets of Asia".