Trade negotiation between the European Union (EU) and the United States would start in July in a bid to boost growth and job creation on both sides of Atlantic, European Commission President Jose Manuel Barroso said Monday at the G8 summit.

He announced that teams from the European Commission and the United States would meet for the first round of negotiations next month. "It will be the start of a joint undertaking of real strategic importance," he said.

Barroso stressed challenges remained ahead of the talks and that it would take time to "move our regulatory regimes closer and addressing the harmful effect of behind-the-border trade barriers."

"Huge economic benefits are expected from reducing red tape and avoiding divergent regulations for the future," he added.

At the same time, Barroso call on European regulators to build bridges faster and more systematically. "We intend to move forward fast. We can say that neither of us will give up content for the sake of speed."

A trade deal between the United States and the EU, together making up half of global economic output and a third of all trade, could boost the EU economy by 119 billion euros (159 billion U.S. dollars) per year, and the U.S. economy by 95 billion euros, according to an EU-commissioned study.