EU set to offer to remove tariffs on nearly all imports from US

The European Union will offer to lift tariffs on nearly all goods imported from the United States as part of negotiations towards the world's largest free-trade deal, sources said.

The offer would be made on Monday, a week before face-to-face talks between EU trade chief Karel De Gucht and his US counterpart Michael Froman in Washington, they said.

The European Commission, which handles trade issues for the EU's 28 member states, will tell the US how far it is willing to open its markets, while US officials are expected to do the same.

Officials familiar with the EU's proposal have said the EU will offer to lift 96 per cent of existing import tariffs, retaining protection for just a few sensitive products such as beef, poultry and pork.

"This is just the first step, but it sends a message that no sector will be completely shielded from liberalisation," said one person involved in preparing the EU offer. Two other European officials confirmed the offer.

Tariffs between the US and the EU are already low, and both sides see greater economic benefits of a transatlantic accord coming from dropping barriers to business.