EU welcomes U.S. free-trade initiative A free-trade deal between the European Union and the United States is a logical step in the context of other bilateral agreements being discussed, such as one between Canada and the EU, says the head of the European Commission. At the same time, observers are seeking to determine what effect a renewed push for a deal between the U.S. and the EU might have on free-trade talks between Canada and the EU. "It's an extremely ambitious accord we are trying to reach," European Commission president Jose Manuel Barroso said at a news conference in Brussels Wednesday. "We [the EU and the U.S.] both need growth," and other deals being negotiated - such as one with Canada - are leading the way, he said. But it would not make sense for two of the world's most significant economies to fail to work out their own deal, said Mr. Barroso. He referred to the Canada-EU talks as an example of positive momentum, saying the two parties are "close to concluding" a pact. Asked about progress in the Canada-EU talks, EU trade commissioner Karel De Gucht said: "I'm confident we can reach an agreement in the coming weeks but there are a number of issues that are not ready. "Quality goes before speed," he added. "The promise of a new trans-Atlantic partnership between the U.S. and Europe also could impact Canada as efforts continue to complete a Canada-EU agreement," Bank of Nova Scotia economists Derek Holt and Dov Zigler said in a research note on Wednesday. But David Madani, chief Canada economist at Capital Economics, said he doesn't anticipate much fallout. I don't think the Americans having talks with the EU changes anything for Canada. Canada's talks with the EU started back in 2009. It seems fairly clear that both sides are committed to achieving some kind of trade arrangement," he said in an interview. "It probably gives us a bit of extra incentive to negotiate and reach an agreement," he added. U.S. President Barack Obama said in his annual State of the Union Address Tuesday that talks are being launched on a far-reaching trade and investment agreement with the 27 countries of the EU. The talks are expected to begin by the end of June. If an agreement is reached it would be the most comprehensive ever, accounting for half the world's economic outpout and one-third of global trade movements. "These negotiations will set a standard, not only for our future bilateral trade and investment, including regulatory issues, but also for the development of global trade rules," Mr. Barroso said. The transatlantic economic relationship between the U.S. and the EU is already the world's largest, encompassing almost $1-trillion in goods and services trade, and supporting millions of jobs on both sides of the Atlantic, the European Commission said in a news release on Wednesday. Mr. De Gucht said there are no plans to "carve out" sensitive issues or sectors during the EU-U.S. negotiations. The two sides in the Canada-EU talks remain apart on such areas as dairy products, cars, telecommunications, pharmaceuticals and resources. Ottawa says free trade with Europe would boost bilateral trade by 20 per cent, add $12-billion a year to the economy and create 80,000 jobs.