Macron Dismisses Trade War with the US Over Iran Nuclear Deal

As many European companies prepare to exit Iran due to fears of US sanctions, Emmanuel Macron, the President of France, stated on Thursday that a trade war between Europe and the US over Washington's decision to withdraw from the Iran nuclear deal, known as the JCPOA, is not on the table. According to Reuters, EU leaders are united in their support for the 2015 nuclear deal with Iran, and the EU announced it would initiate a legal process to prohibit European companies from complying with the sanctions that Donald Trump has reinstated against Iran. However, large European companies face a tough choice: to do business with the US, the world's largest economy, or to continue trading with Iran and risk heavy fines and losing access to the US financial market. Even the head of the EU's financial services stated that given the global nature of financial and banking activities, using the EU's political and legal power to prevent banks from complying with the sanctions announced by Trump on May 8 would not yield significant results. Macron acknowledged that companies and banks face many difficulties in trading with Iran, especially multinational companies whose ties with the US are intertwined. However, he emphasized that more important issues are at stake. Upon arriving in Bulgaria for the second day of the EU summit, he said, 'We are not starting a strategic trade war with the US over Iran. We will not impose reciprocal sanctions on American companies. That is meaningless.' Total, the French energy company, stated on Wednesday that it might abandon its multi-billion dollar gas field development project in Iran unless it can secure an exemption from US sanctions. The Iranian government has always portrayed this project as a symbol of the success of the nuclear deal. Macron added, 'The President of France is not the CEO of Total. My priority is not trade or financial activity in Iran. My priorities are political issues, avoiding tension, and taking all actions to open up Iran's economy and society.' Reuters adds that the EU is striving to save the JCPOA and considers this agreement a crucial factor in maintaining international security. However, Donald Trump has called it 'the worst deal ever made,' arguing that it has failed to limit Iran's missile programs and its involvement in Syria, Yemen, Iraq, and Lebanon. European officials say there is no easy way to protect European companies from the sanctions that Trump has reinstated, and some large European companies have already begun to exit Iran. Concurrently with Macron's speech, Maersk, the largest shipping company in the world, announced it would cease operations in Iran. Nevertheless, European leaders still speak with confidence. Angela Merkel, the German Chancellor, stated at a press conference on the sidelines of the EU summit, 'Even though the US has exited the JCPOA, all EU members still support this agreement, and we will continue to talk with the US.' The EU regulations to prohibit European companies from complying with US sanctions have never been used and are not only important to implement but also very difficult. Meanwhile, the Italian steel company Danieli has halted efforts to find financing for its 1.5 billion euro contracts in Iran. The Finnish mining technology company Outotec also stated that US sanctions would complicate and slow down its relations and activities in Iran, but it is still too early to announce a complete exit from Iran. Hassan Rouhani, the President of Iran, has stated that if the other signatories of the nuclear deal (China, Russia, France, the UK, and Germany) guarantee that Iran will be safe from sanctions, the country will remain in the agreement.