Europe ‘mulls’ sanction shield

LONDON, May 14, (Agencies): Britain’s foreign minister Boris Johnson said on Monday he will discuss ways to protect companies doing business with Iran at a meeting with counterparts from France and Germany on Tuesday after US President Donald Trump pulled out of the Iran nuclear deal.

“What we are going to do tomorrow in Brussels is we are going to have a conversation about what we can do to help UK firms, European firms have some confidence that they can still do business,” Johnson said.

Trump’s decision last week to renege on the 2015 nuclear accord with Iran and re-impose sanctions against Tehran came with the threat of penalties against any foreign firms involved in business there.

The threat of US sanctions on European companies trading with Iran and tariffs on aluminium and steel exports are a test of European sovereignty and will require a firm response, an adviser to French President Emmanuel Macron said on Monday.

The United States threatened on Sunday to impose sanctions on European companies that do business with Iran, as the remaining participants in the Iran nuclear accord stiffened their resolve to keep that agreement operational.

“It’s an important test of sovereignty,” the French presidential adviser told reporters in a briefing on Monday. “There must really be a software update on these issues of European assertiveness.”

The adviser said French and EU officials were working on different technical and legal issues to preserve existing business ties and financial channels with Iran, and to shield their companies from sanctions.

An update of the 1996 EU legislation against US sanctions, called a blocking statute, was being considered, he said, adding that French and German companies in particular were

above all asking for visibility on the subject.

Macron will use the opportunity of an informal EU summit in Sofia, Bulgaria, on Wednesday and Thursday to reaffirm a firm stance on the issue with his EU counterparts.

“There is no sign of division among Europeans,” the adviser said. “Everything indicates that the European position will be firm and united,” he added.

Asked about the possibility of negotiating a new free-trade agreement with the US to avoid the imposition of tariffs on EU aluminium and steel exports, the adviser said President Donald Trump should waive tariffs beyond the current June 1 deadline before any talks can start.

“All Europeans are very clear that, before considering any option of this nature, Americans must offer a permanent and unconditional exemption” to Europe, the official said.

“There is very strong US pressure on this, which requires a firm European response, that’s what the president will say,” he added.

“We can’t negotiate under pressure, with a gun to our head.”

The United States’ top diplomat said Sunday Washington still wants to work with Europe to counter Iran’s “malign behavior” as President Donald Trump called his withdrawal from the landmark nuclear deal key to containClouds ing Tehran.

But while Secretary of State Mike Pompeo talked up the prospect of renewed coordination with America’s allies, another top aide reminded Europe its companies could face sanctions if they continue to do business with the Middle Eastern power.

The development came as Iran’s foreign minister said he was hopeful of forging a “clear future design” for the pact, while speaking in Beijing at the start of a diplomatic tour aimed at rescuing it.

Trump’s announcement last Tuesday that the US was exiting the 2015 nuclear accord was met with widespread dismay among its other signatories -- China, Russia, France, the Britain and Germany.

But Secretary of State Mike Pompeo said Washington was keen to thrash out a more wide-ranging deal with its European partners.