US Trade Representative Michael Froman called his EU counterpart Karel De Gucht last Friday. This was to cancel the second round of discussions following the effects of the US government shutdown over Congressional budget dispute.

De Gucht handles trade for 28 member countries of the European Union. The EU trade representative said that the US shutdown would not hinder the discussions between the US and EU to reach its overall aim of achieving the biggest free trade deal and investment deal.

Dan Mullaney, the assistant US Trade Representative, would be expected in Brussels on Monday to find another date for a second round of discussions with the EU. Meanwhile, the Congress must act to settle budget issues in the US by October 17 to avoid a first ever default on government debt.

Both EU and US agreed to reach a deal by the end of 2014 as the European Commission's term would end by November of next year. On the other hand, the United States would hold mid-term elections, said a Reuters report.