The North Atlantic economic region still encompasses the two strongest economic poles by far in an increasingly multipolar world economy. While the U.S. and EU markets are deeply interlinked, institutional integration among both actors, however, remains sketchy at best. Recently, talk about deeper institutional integration has resurfaced. Should the U.S. and the EU pursue this course in their so far lackluster bilateral dialogue? They may have to out of necessity. Close transatlantic economic relations cannot be taken for granted without effort. On the contrary, the costs of not integrating are rapidly growing: rival regionalism, economic burden shifting, rising protectionism and economic nationalism can put a severe strain on transatlantic economic relations, weakening both sides in the face of rising global competition.
Therefore, a comprehensive agreement to create an integrated Atlantic Economic Area (AEA) that goes beyond the current bilateral dialogue and that includes conflict-prone sensitive and strategic sectors and issues should be given serious consideration.
An economically resurgent Europe on the one hand, the ongoing shift in the global economic balance of power away from its traditional Atlantic predominance on the other hand might provide a window of opportunity in the next few years to pursue such a more ambitious approach to Atlantic integration: While less prone to charges of transatlantic ganging-up against emerging market countries than five or ten years ago, an AEA agreement might give a welcome competitive boost to American and European economies in an ever more challenging global economic environment, provided it does not foster new protectionist tendencies.
