The Guardian: Europe Seeks to Create a Protective Umbrella for Companies Trading with Iran

The British newspaper The Guardian reports that with the increasing likelihood of the U.S. withdrawing from the JCPOA, the European Union is considering creating a protective umbrella, including providing credit lines to support companies trading with Iran. According to the report, it is expected that with the potential U.S. exit from the nuclear agreement, these European and multinational companies will face significant losses. It is still unclear whether U.S. President Donald Trump will extend the Iran nuclear agreement on May 12, but his views and criticisms of the agreement, as well as recent appointments in senior White House positions, have increased speculation about a U.S. withdrawal from the JCPOA. Recently, Trump dismissed his Secretary of State Rex Tillerson over 'differences regarding Iran and some other foreign policies' and replaced him with Mike Pompeo, the head of the CIA, who is a strong critic of the JCPOA. Trump has also appointed John Bolton, a conservative politician with hardline views on Iran, as the White House National Security Advisor. The Guardian writes that a U.S. withdrawal from the JCPOA could lead to the re-imposition of harsh sanctions against Iran and losses for multinational companies trading with the Islamic Republic, as these companies would lose the support of global banks for trade with Iran. This could exacerbate tensions between Europe and the U.S. According to the report, this week, EU foreign ministers are meeting and trying to persuade the U.S. to remain in the JCPOA, but instead of withdrawing from the nuclear agreement, new sanctions should be imposed on Iran that could target its missile program. Federica Mogherini, the EU's foreign policy chief, also stated at a press conference on Monday that Europe intends to create a protective umbrella against U.S. sanctions for its companies to safeguard their interests. British Foreign Secretary Boris Johnson also announced on Wednesday that Europe might keep the agreement alive even if the U.S. withdraws from the JCPOA, although the agreement would lose much of its value and the process would become more complicated. Simon Gass, a former key official at the British Foreign Office who was responsible for the negotiations and nuclear agreement in 2015, has also supported the idea of preserving the JCPOA in the absence of the U.S. The Guardian writes that he has written in a letter to European leaders that Europe must respond strongly to potential U.S. sanctions against companies trading with Iran and provide non-dollar credit lines and necessary guarantees for their continued operations. Recent statistics from the Iranian Trade Development Organization show that Europe exported about $8.8 billion worth of goods to Iran in the last 10 months of the past Persian year, reflecting a 34% increase compared to the same period last year. After the JCPOA, trade between Iran and Europe has significantly increased. For example, in the entire 12 months of 2015, Iran's imports from Europe were slightly above $6 billion, and in 2016, it reached about $8 billion. Meanwhile, imports from Europe in just the last 10 months have exceeded the total imports of 2016.