National Post

Donald Trump may be playing into Vladimir Putin’s hands over Europe.

- LEONID BERSHIDSKY

Driving a wedge between the U.S. and Europe has long been a top policy goal for President Vladimir Putin of Russia. Now, another oil regime, Iran, shares that ambition. And even though Iran and Russia don’t have a realistic shot at success, President Donald Trump’s hamhanded treatment of his European allies brings them just a little closer to achieving their objective.

Trump’s attitude toward Europe is clear: he considers the European Union a collection of puffed-up small countries dependent on the U.S. for economic survival and military protection. In Trump’s view, these little nations will always cave to pressure. That stance was conveyed by the imperious tweet from the newly arrived U.S. ambassador to Germany, Richard Grenell, who ordered German companies that do business in Iran to “wind down operations immediatel­y.” Grenell has since explained that the tweet followed “the exact language sent out from the White House talking points” on Trump’s decision to withdraw the U.S. from the Iran nuclear deal.

The furious reaction to the tweet in Germany’s political circles hasn’t elicited so much as an apology from the U.S. Nor was Trump too worried about the joint statement by Germany, France and the U.K. indicating these countries intend to stick to the Iran agreement. It’s clear from a background briefing by two senior State Department officials that the U.S. didn’t have a detailed discussion with the Europeans before reneging on the agreement. Asked if the U.S. was prepared to sanction French and German companies that do business in Iran, one of the officials said the “discussion­s” were just starting.

The Putin government, which, like the Europeans and Iranian President Hassan Rouhani, announced it would stick to the nuclear agreement, loves this kind of thing. Ivan Danilov, a columnist for the government propaganda outlet RIA Novosti, used the occasion to predict a “big Middle Eastern war” and claim that “the socalled transatlan­tic solidarity is the first victim of this conflict” as Trump “approaches a state of proud solitude on the internatio­nal stage.”

That view is probably as delusional as the Trump team’s apparent conviction that Europe will always roll.

There is little respect for Trump in European capitals. French, German and U.K. politician­s consider his presidency an aberration and a temporary setback. The current plan, inasmuch as there is one, is to outlast Trump and preserve all the frameworks he’s trying to break until the next U.S. president takes office. No one in Moscow or Tehran should expect such moderate leaders as Chancellor Angela Merkel, President Emmanuel Macron or, especially, Prime Minister Theresa May, to suddenly turn anti-American.

But that doesn’t mean the core European powers are going to accept Trump’s contempt. Europeans have stood up to the U.S. before. The most relevant precedent concerns the extraterri­torial Cuba sanctions in the Helms-Burton Act, which Bill Clinton signed into effect in 1996. The European Union’s answer was a regulation protecting European companies from such sanctions. It rendered U.S. rulings against firms that defied the U.S. restrictio­ns unenforcea­ble in the EU. It was upheld in 2007 when Austria forced one of its banks to reinstate the accounts of 100 Cubans closed while being taken over by a U.S. company.

Europe’s stance on Cuba allowed European companies, such as Spain’s Sol Melia hotel group and France’s Altadis tobacco company, to remain major investors in Cuba after Helms-Burton. The U.S. sanctions did scare off other European investors, especially those with U.S. operations. The EU couldn’t protect them. But, as Joaquin Roy of the University of Miami wrote, “The true effect of the Helms-Burton law has been to foster unity and galvanize opposition to it on the part of all the government­s of Europe and Latin America.” In 1997, in the face of European action at the World Trade Organizati­on, the U.S. compromise­d by suspending the law’s most onerous provisions.

There’s no reason for Trump to count on weaker resistance today, especially since Iran presents a far greater economic opportunit­y than Cuba did. Iran, a country that holds seven per cent of the world’s entire mineral reserves, attracted $7.38 billion in approved foreign investment projects between January 2016 and September 2017 after taking in only $2 billion in 2015. Most of the new money is coming from China and the EU.

Still, the U.S. sanctions could have deep consequenc­es. If France’s Total, which has a big U.S. operation, is forced to pull out of Iran’s South Pars project, China’s CNPC, which is now Total’s partner, would likely take over.

The stakes are higher for the U.S. than the Trump administra­tion appears to realize. With its influence on SWIFT, the Brussels-based payment-facilitati­on system, and its trade power, the EU is capable of blunting U.S. sanctions. If they prove ineffectiv­e and Iranians merely rally around their government as Russians have done in the face of American restrictio­ns, the U.S. may be exposed as less of a fearsome global policeman than Trump would like it to be.

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