Europe Can’t Effectively Stop the U.S. from Reimposing Sanctions on Iran

Feb. 23 2018

At a recent European economic conference, the head of the EU’s Iran task force stated that, if the U.S. were to renew sanctions against Iran that had been removed pursuant to the 2015 nuclear deal, Europe need not go along. He cited the precedent of the 1990s, when Brussels used “blocking regulations” that shielded European companies from the effects of American sanctions on Iran and Libya. But, writes Richard Goldberg, the sanctions now in question are much tougher, and would give Europeans little choice in the matter:

[I]n 2010 . . . Congress passed a new law leveraging America’s greatest strength against the fulcrum of global commerce with Iran: financial transactions. After years of blacklisting most financial institutions in Iran for their involvement in various illicit activities, Congress recognized that it also needed to punish third parties for doing business with these criminal enterprises. Thus, it declared that any foreign bank that maintained a correspondent banking relationship with a designated Iranian bank would forfeit its banking relationships in the United States. . . .

If President Trump decided to enforce these sanctions again, banks around the world would immediately be at risk of losing their correspondent accounts in the United States. Blocking regulations might shield a company from American-levied fines, but they cannot shield a British bank from losing its access to the U.S. financial system. This time around, the downside of U.S. sanctions would far outweigh the upside of Iranian trade. . . . And while diplomats in Brussels may want to stare Trump down and see if he flinches, banks will not want to take that risk.

The British, French, and German governments could help avoid this potential crisis by taking a more thoughtful approach on the Iran deal. Agreeing to repudiate its sunset clauses would avoid a transatlantic train wreck today without violating the agreement for years to come. Demanding verification of the agreement with visits to Iranian military sites would be a step toward enforcing the deal, not breaking it.

Furthermore, nothing in the Iran deal prohibits Europe or the United States from reimposing sanctions related to any Iranian entity—even the central bank—if it is connected to non-nuclear activities such as ballistic-missile development and terrorism. That’s a view shared by both Democrats and Republicans in the United States—and given Europe’s direct security interest in curbing Iran’s missile program and regional expansion, it’s a view that European diplomats should adopt as well.

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More about: European Union, Iran sanctions, Politics & Current Affairs, U.S. Foreign policy

 

For the Time Being, Palestinians Are Best Off under “Occupation”

Nov. 18 2019

Many who profess concern for the Palestinians agree that Israel ought to abandon its presence in the West Bank—which remains controlled by Jerusalem, even as most of its Arab residents live under the governance of the Palestinian Authority (PA). But, writes Evelyn Gordon, the Gaza Strip, from which Israel withdrew completely, provides a clear demonstration why West Bank Palestinians are beneficiaries of the status quo:

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More about: Gaza Strip, Palestinian Authority, Palestinian economy, West Bank