The European Union’s long-planned trade deal with the US has collapsed with negotiations showing no sign of progress despite three years’ of talks, according to Germany’s economy minister.

Sigmar Gabriel, also Germany’s vice-chancellor, claimed this weekend that disagreements between the EU and the US, and between countries within the EU, appear to have “de facto” killed off any prospect of a deal to create the Transatlantic Trade and Investment Partnership (TTIP), which would be the largest bi-lateral free trade agreement ever.

TTIP was envisaged as a wide-ranging free trade deal between the two enormous economic blocs, which European officials estimated would boost the EU’s GDP by €120bn, or 0.5pc.