German Politician: Iran Sanctions Have Catastrophic Effects
Elmar Brok, German representative to the European Parliament, warned about the consequences of American sanctions against Tehran, pointing to challenges ahead in protecting European companies dealing with Iran.
According to Elmar Brok, a politician from Germany’s Christian Democratic Union party, the European Union has limited capacity to protect European companies that have taken the risk of trading with Iran and may face punishment from the United States.
According to Germany’s news agency, Brok said in a radio interview with SWR network that nonetheless, the European Union has attempted to help companies that want to continue trading with Iran despite American threats through mandatory legal requirements.
He noted that despite European efforts, the German automotive industry, which had previously faced problems due to diesel engine fraud and software manipulation to understate air pollution levels, decided to end trade with Iran and avoid further problems in the American market.
With the beginning of the first phase of the revival of American sanctions against Iran, German automaker Daimler announced that it would suspend its operations in Iran.
Elmar Brok said that Daimler’s decision can be understood. He continued, but the effects of the sanctions will be catastrophic, because “the United States can impose its demands on companies with interests in the country through its cross-border trade policy.”
Brok explained that in the end, it is the capacity and power of a market that will make the final decision. He added: “This means that we are economically relying on a policy in this path that fuels conflicts instead of resolving problems in the Middle East.”
Donald Trump, President of the United States, withdrew from the nuclear agreement with Iran in mid-May. As of Tuesday, August 16, American sanctions against Iran have been revived. The United States has threatened other countries not to engage in business with the Islamic Republic.
Trump has threatened that companies dealing with Iran will have no place in the United States.
The European Union opposes new sanctions against Iran and wants to find a mechanism to support European companies entering the Iranian market. The European Union is considering providing requirements so that these companies can seek compensation from the United States for costs and losses they incur due to leaving the Iranian market.
Source: DW
