Fearing that the U.S. will be left behind while the European Union forges free-trade deals with other countries, including Canada and Colombia, the president of the National Association of Manufacturers called for an in-depth study of a “Trans-Atlantic Free Trade Area” between either the EU and the United States or the EU and the members of the North American Free Trade Agreement — the U.S., Canada and Mexico.

John Engler pointed out that one-third of tariffs on U.S. exports to the world are paid to the EU, even though most rates are low. “A Trans-Atlantic Free Trade Area could make a lot of sense,” Engler said. “In the U.S., we already have free trade with Canada and Mexico, and the EU already has a free-trade agreement with Mexico.”

As a first step to a possible trans-Atlantic trade deal, Engler vowed to work with the NAM’s European counterpart, BusinessEurope, and business leaders on both sides of the Atlantic to review the concept carefully. He said the NAM would also press European and U.S. business leaders to actively consider negotiation of a Trans-Atlantic Free Trade Area. “We must not allow a financial crisis or unfounded political accusations to frighten us into inaction,” he said. “Let’s instead find what benefit we can in these difficulties, including a renewed appreciation of manufacturing’s role in creating prosperity for our citizens.”

Engler said the NAM does not regard the breakdown of World Trade Organization talks in July to be the end of the Doha Round or the death of the WTO.

“Rather than spell the WTO’s doom, as some might warn, a U.S.-EU agreement could jog the rest of the world into realizing that they will be left behind unless they adopt a pro-liberalization attitude and press for quicker negotiations in the WTO,” Engler told a business group in Belgium.

Despite the rise of China, India and other emerging economies, Engler said the U.S. and EU together account for 56 percent of Gross World Product. “This gives us tremendous clout, but also tremendous responsibility,” he said.