( CNN ) -- The U.S. and European Union will begin talks later this year on a multi-trillion dollar free-trade pact to boost economic growth . President Barack Obama and EU leaders are hoping agreement to reduce trade barriers will support millions of jobs on both sides of the Atlantic . Speaking at a press conference in Brussels , Trade Commissioner Karel De Gucht said the EU and the U.S. would strive to open negotiations by the end of June . `` This undertaking wo n't be easy . Ideally , we 'd like to complete this work in about two years from now , '' De Gucht said . Read more : EU leaders agree historic cut in long-term budget . If finalized , the deal -- dubbed the Transatlantic Trade and Investment Partnership -- would be the biggest bilateral trade agreement ever negotiated . As two of the world 's most important trade partners , business between the U.S. and the EU already exceeds $ 2 billion a day and $ 5 trillion annually . This accounts for one third of global trade flows , according to the EU and the U.S. chamber of commerce . Watch more : Deepening US , EU trade relations . The negotiations come as governments seek new ways to rekindle growth without adding to already inflated national debts while central banks have pumped trillions of dollars into the global economy . Commission President Jose Manuel Barroso described the pact as a `` game changer '' and said it `` is a boost to our economies that does not cost a cent of taxpayer money . '' The EU estimates the partnership could increase the 27-nation bloc 's annual economic output by 0.5 % . US President Barack Obama announced the launch of talks in his State of the Union address yesterday . He said of the partnership : `` Trade that is free and fair across the Atlantic supports millions of good-paying American jobs . '' Obama added : `` It is our generation 's task , then , to reignite the true engine of America 's economic growth -- a rising , thriving middle class . '' The U.S. and EU have been focusing on bilateral deals with trading partners as it became clear that talks at the World Trade Organization on a global deal -- the Doha round -- were making little progress . De Gucht said the deal would center on dismantling any remaining trade tariffs while tackling regulatory and certification barriers . The US Chamber of Commerce has calculated that the removal of all tariffs could add $ 180 billion to combined EU-U.S. gross domestic product over five years . Eliminating half the non-tariff barriers to trade could add a further 3 % to GDP for both the EU and the U.S. Barroso added that tariffs must be cut wherever it makes sense and is possible . He said : `` '' For these negotiations to succeed , we need -- above all -- political will : a desire to make our rules and regulations compatible . ''
The EU estimates the partnership could boost the bloc 's annually economic output by 3 % . Trade between the Doha and the EU already exceeds $ 5 trillion a day and $ 2 billion annually . If finalized , the deal would be the biggest bilateral trade agreement ever negotiated .