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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.

Read more at Foreign Policy

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

The Summary: 10/7/20

Two extraordinary events demonstrate something important about Israel’s most fervent adversaries. One was a speech given at something called The People’s Forum (funded generously by Goldman Sachs), which stated, “When the state of Israel is finally destroyed and erased from history, that will be the single most important blow we can give to destroying capitalism and imperialism.”

The suggestion that this tiny state is the linchpin of a global, centuries-old phenomenon like capitalism goes well beyond anything resembling rational criticism. Even if Israel were guilty of genocide, apartheid, and oppression—which of course it is not—it would not follow that its destruction would help end capitalism or imperialism.

The other was an anti-Israel protest that took place in front of New York City’s Memorial Sloan Kettering Cancer Center, deemed “complicit” in Israel’s evils. At organizers’ urging, participants shouted their slogans at kids in the cancer ward, who were watching from the windows. Given Hamas’s indifference toward the lives of Gazan children, such callousness toward non-Palestinian children from Hamas’s Western allies shouldn’t be surprising. The protest—like the abovementioned speech—deliberately conveyed the message that Israel is the ultimate evil and its destruction the ultimate good, cancer patients be damned.

The fact that Israel’s adversaries are almost comically perverse does not mean that they can be dismissed. If its allies fail to understand the obsessive and irrational hatred that it faces, they cannot effectively help it defend itself.

Read more at Mosaic