Sanctions on Iran and Venezuela May Empower US Rivals

18 May, 2018, 10:16 | Author: Wade Massey

Last week, the US withdrew from the Iran nuclear deal, signed between Tehran and the P5+1 powers (China, France, Russia, UK, US, plus Germany) three years ago.

The EU leaders pledged at the meeting to keep a united front against Trump.

Trump's decision to pull out of the Paris climate change accord and the 2015 nuclear deal with Iran threaten Europe's own foreign policy, which was long complementary to Washington's.

On Friday, the European Commission is slated to kick off the process of activating a law that bans European companies from complying with US sanctions against Iran. "Russia also becomes a source, and if Russian Federation can upset the USA, they will do it".

On Wednesday, asserting Europe's growing readiness to distance itself from its transatlantic ally, Tusk launched a stinging criticism of the U.S. president, saying that "with friends like that, who needs enemies".

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Leaders including Macron and German Chancellor Angela Merkel agreed that the commission, the EU's executive, is prepared to discuss trade concerns with the USA including deepening energy ties and reform of the World Trade Organization once a permanent waiver is in place, the official said.

French President Emmanuel Macron said Thursday that "it's Europe's economic sovereignty, and what we are demanding is that we are exempted without conditions or time limits". The law was initially passed to prevent the U.S. blocking European Union companies from trading with Cuba. The bloc would also discuss WTO-compatible ways to improve reciprocal market access for industrial products including cars to avoid a trade war. We are calling all the parties for negotiations on an extended version of the agreement.

"Which company is going to risk access to the U.S. market, which is 100 times larger", Ardavan Amir-Alsani, a Paris-based lawyer who specialises in Iran, said in an interview.

The veiled threats did not stop a London-based consortium of worldwide companies striking a deal to develop an oilfield in Iran for 655 million barrels of oil in the southwestern Kernaj field. The US dollar's overwhelming position of dominance in the global financial system is one prominent example.

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