Under this scenario, the transatlantic economy, the largest commercial artery in the world, would be revived. The global clout and credibility of the United States and Europe would be restored. By coming together as opposed to drifting apart, the U.S. and Europe would remain the standard bearers of the global economic architecture. Whatever the common standards of a free trade and investment agreement, and whatever the harmonization and standardization of industry/sector regulations, a transatlantic deal could become the template by which the United States and Europe negotiate with various emerging market economies — China included.

In this sense, a transatlantic free trade and investment agreement would serve notice to the developing nations that the world’s two largest economies can still work together, and when they do, they still have a great deal of global economic leverage over most, if not all, developing nations.

In the end, a sweeping free trade and investment agreement between the United States and the European Union would be a global game-changer. The deal would reverberate around the world.  And in time, Washington and Brussels would come to realize that the best way to promote growth and rise to the challenge of emerging powers like China is by working together, not apart.