David Cameron has hailed the prospect of a transatlantic trade deal boosting the UK economy after Barack Obama signalled talks would begin this year.
The Prime Minister has made efforts to remove barriers between the US and the European Union one of his priorities for Britain's G8 presidency this year.
He discussed the issue earlier this week in a phone call with the American president - who announced his backing in the State of the Union address.
"We will launch talks on a comprehensive Transatlantic Trade and Investment Partnership with the European Union," Mr Obama said in the annual speech. "Because trade that is fair and free across the Atlantic supports millions of good-paying American jobs."
Mr Cameron said: "It's great that President Obama has set out his determination to agree a trade deal between the EU and the United States. We discussed this issue on Monday and we are both committed to launching negotiations this year.
"A deal will create jobs on both sides of the Atlantic and make our countries more prosperous. Breaking down the remaining trade barriers and securing a comprehensive deal will require hard work and bold decisions on both sides.
"But I am determined to use my chairmanship of the G8 to help achieve this and to help European and American businesses succeed in the global race."
It comes after the White House sounded the alarm about the prospect of Britain leaving the EU following Mr Cameron's promise of an in/out referendum. The PM is seeking to renegotiate the UK's relationship with Brussels and put the new deal to voters should the Tories win the 2015 general election.
Mr Obama has told the Prime Minister, who backs continued membership in a reformed EU, that the US "values a strong UK in a strong European Union".
And the message was reinforced by vice president Joe Biden in talks at Downing Street last week.
UK 
