German analysts propose new European free trade deal with US: report

The German Institute for Economic Research (DIW) is proposing a rapid European initiative for a new free trade agreement with the United States.

A replacement for the failed TTIP agreement would strengthen Europe's position in relation to China, DIW President Marcel Fratzscher told the Augsburger Allgemeine newspaper in comments published Saturday.

"We should agree with the new US administration on how to deal with China. Therefore, Europe should focus on a new trade agreement with the US, in which we communicate common standards, that are then globally binding."

The analyst criticized the investment agreement between the EU and China, the text of which was published on Friday.

"An agreement with China is important, but China is playing by its own rules," Fratzscher said.

The best strategy for Europe, he said, is to "assert its own interests in global system competition, in a strong transatlantic partnership."