President George W. Bush, German Chancellor Angela Merkel and EU Commission President Jose Manuel Barroso signed the trans-Atlantic economic partnership at an annual US-EU summit in Washington on Monday.
Cabinet officials also signed a landmark "open skies" agreement designed to allow every EU and US airline to fly between every city in the European Union and the United States starting March 30.
The agreement could bring up to 12 billion euros ($16.4 billion) in economic benefits, up to 80,000 new jobs on both sides and lower airfares, according to EU officials.
"This agreement provides air service with a reliable and modern set of regulations," German Transportation Minister Wolfgang Tiefensee said. "Both sides will benefit."
The deal notably ends restrictions at London's Heathrow airport, where US-British service has been limited to four airlines. However, the accord bars EU investors from buying shareholder control of US airlines.
Lowering economic hurdles
