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Global Investor: Jeffrey E. Garten.

Newsweek International

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Byline: Garten is the Juan Trippe Professor of International Trade and Finance at the Yale School of Management.

Ties That Should Bind

German chancellor Angela Merkel is in Washington this week pushing for a quantum leap in closer economic ties between the EU and the United States. The basic idea isn't new. It could be traced to the Marshall Plan of 1947 and to a number of transatlantic free-trade proposals. But this is a particularly timely initiative and the Bush administration should welcome it with open arms.

To be sure, Merkel is not calling for a typical trade agreement focused on tariffs, subsidies and other overt barriers to commerce. That's because trade accounts for just 20 percent of the $3 trillion ...

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