President Barack Obama greets German Chancellor Angela Merkel as she arrives at the NATO summit on May 20, 2012 in Chicago, Illinois. - 

In last night's State of the Union address, President Obama proposed a new trade deal with Europe:

"Tonight I am announcing that we will launch talks on a comprehensive transatlantic partnership with the European Union."

Marketplace's Europe bureau chief Stephen Beard breaks down the specifics of the deal, gauges EU reaction, and explains the obstacles ahead.