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May 18, 2018 www.intellinews.com I Page 3
EU set for clash with US over law blocking Iran sanctions
The summit in the Bulgarian capital marked
the adoption by the EU of a more aggressive
tone towards Donald Trump when it comes to
the nuclear accord — which the UK, France and Germany and other signatories Russia, China and Iran are attempting to salvage — and trade battles initiated by the White House. European Council President Donald Tusk told reporters: “The problem is if your closest friend is unpredictable. It is not a joke now. This is the essence of our problem now with our friends on the other side
of the Atlantic. I can agree with President Trump when he said unpredictability can be a very useful tool in politics. But only against enemies and opponents. Unpredictability is the last thing we need with friends and family.”
The previous day, Tusk commented that
Trump had “rid Europe of all illusions” with his withdrawal of the US from the nuclear deal and trade disputes, remarking: “Looking at the latest decisions of President Trump, someone could even think that with friends like that, who needs enemies?”
Announcing that the EU is to reactivate a statute last used to protect European companies working in Cuba before the US trade embargo was
lifted on the Latin American country, European Commission President Jean-Claude Juncker, said in Sofia: "We will begin the 'blocking
statute' process, which aims to neutralise the extraterritorial effects of US sanctions in the EU.
We must do it, and we will do it tomorrow [May 18] morning at 10:30."
The use of the statute to protect business in Cuba eventually saw the US back down and agree to EU companies continuing to pursue commerce on the island.
Time is of the essence when it comes to saving the nuclear deal, otherwise known as the Joint Comprehensive Plan of Action (JCPOA). The
more time it takes to produce tangible results
in rescuing the accord, the greater will be the impatience of the hardliners in Iran, who say the country’s centrist-pragmatic President Hassan Rouhani should never have trusted the US enough in the first place to sign the JCPOA in late 2015.
Clock is ticking
The clock is ticking on the salvaging effort given that in three to six months’ time foreign companies that continue to do business with Iran will be exposed to Washington’s sanctions, according to the US Treasury. Tempers may fray if the US gives no quarter as Europe pushes
for waivers to shield its companies from the penalties.
Referring to the leaders’ talks in Sofia, Tusk
also said: “On the Iran nuclear deal, we
agreed unanimously that the EU would stay in
the agreement as long as Iran remains fully committed to it.” He added: “Additionally, the Commission was given the green light to be ready to act whenever European interests are affected.”
The ‘blocking statute’ is a 1996 regulation
that prohibits EU companies and courts from complying with foreign sanctions laws. It stipulates that no foreign court judgments based on these laws have any effect in the EU.