KENNETH Clarke, the Prime Minister’s trade envoy has spoken to Yorkshire businesses about the prospect of a future trade agreement between the European Union and United States.

Negotiations are expected to begin this summer, with President Obama hoping to conclude a deal within two years.

Mr Clarke said a successful deal would break down barriers to trade between the economies, save exporters millions of pounds, generate new jobs, and create a massive new marketplace representing 47 per cent of the world’s output.

New quarterly figures published by HM Revenue and Customs showed that total exports were worth more than £4.21 billion to businesses across Yorkshire and the Humber between January and March 2013, and the US is the region’s number-one export partner.

Wetherby-based office equipment company ABF (Alternative Business Furniture) has a US operation in Pennsylvania, from which it is driving growth through several different states.

Darren Buttle, managing director of ABF Europe, said: “The USA is a key growth market for us – in my view, it is the most important and influential place to do business with in the world.

“Anything that opens up this market to more EU traders is a good thing.”