— This is the script of CNBC's news report for China's CCTV on June 18, Tuesday.
Welcome to the CNBC Business Daily.
The US and the EU are kicking off free trade talks. British Prime Minister David Cameron said a deal would help ramp up growth on both sides of the Atlantic, and create thousands of new jobs.
[Sound on tape by British Prime Minister David Cameron saying: We're talking about what could be the biggest bilateral trade deal in history, a deal that will have a greater impact than all the other trade deals on the table put together.]
U.S. President Barack Obama said the first round of negotiations would take place in July. He warned it wouldn't be easy to reach an agreement, but the deal is in the best interest of both parties.
[Sound on tape by U.S. President Barack Obama saying: There are going to be sensitivities on both sides, there are going to be politics on both sides, but if we can look beyond the narrow concerns to stay focused on the big picture, the economic and strategic importance of this partnership, I'm hopeful we can achieve the kind of high standard and comprehensive agreement that the global trading system is looking to us to develop.]
Economists estimate a trade deal would boost both economies by more than 100 billion dollars a year.
And our panel of experts told us that while a deal would eventually materialize; there may be some speed bumps along the way.
Have a listen.
[Sound on tape by Rockwell Schnabel, The Sage Group, Founder and Chairman: I think there's a lot to be gained, the biggest advantage I see today is that you have the leadership in the United States as well as at the EU level are totally committed to get this done and they are actually talking about getting it done relatively soon.]
[Sound on tape by Tai Hui, Chief Asia Pacific Strategist, J.P. Morgan Funds: I think the difficult part is that there is still going to be a huge degree of nationalistic sentiment, not least because a lot of local lobbying group who will still be focusing on the weak growth and obviously in Europe, given the rate of growth is struggling, I think these free trade talks will be very very difficult.]
Meanwhile, Paris refused to sign off on EU, U.S. free trade talks until Brussels and Washington agreed to shield its movie and entertainment industries.
The French government eventually won a temporary stay ...but tensions came to the fore again on Monday after European Commission President Jose Manuel Barroso said opposition to opening Europe's culture industry was 'reactionary'.
So could French opposition hurt negotiations?
Here's one view.
[Sound on tape by Michael Czinkota, Associate Professor, Georgetown University: When we had discussions here in Washington in February-March of this year it was left quite clear that there should be everything on the table so that all parties can feel comfortable coming together and discussing things. But now of course the EU has begun, especially under the leadership of France, to set aside the cultural dimension which complicates things. I don't think it will really give a negative spin to the meeting or be a crucial obstacle but it does result in complications.]
Some analysts say the deal comes as EU and U.S negotiators are increasingly aware of China's rising power and the need to deepen Western economic integration.
Adding that Asian trading partners of the EU and the U.S. are unlikely to suffer any impact in the short term.
[Sound on tape by Michael Czinkota, Associate Professor, Georgetown University: The fact is of course that in the last decade the picture of trade relations, has changed enormously and nowadays our trade with Asia is about double that of trade with Europe. Now, on one hand that can be an indicator that Europe needs to catch up and there's a lot of room for growth but on the other hand it does indicate that we have more than one trading partner in this world in terms of large groups. The action clearly is more in Asia right now and probably will remain more in Asia over the next few years.]
Li Sixuan, from CNBC's Asia headquarters.