German politician: Iran sanctions have catastrophic effects
Elmar Brok, a German representative in the European Parliament, warned about the consequences of US sanctions against Tehran, pointing to the problems ahead in protecting European companies from doing business with Iran.
According to Elmar Brok, a politician from the German Christian Democratic Party, the European Union has limited power to protect European companies that have taken risks to trade with Iran and are likely to be punished by the United States.
According to the German news agency, Brook said in a radio interview with the SWR network that the European Union has nevertheless tried to help companies that want to continue doing business with Iran despite US threats with legal requirements.
He noted that despite Europe's efforts, the German automotive industry, which had previously been in trouble due to diesel engine cheating and software to understate air pollution levels, decided to end trade with Iran and avoid further problems in the US market.
With the beginning of the first phase of the reimposition of US sanctions against Iran, the German automotive company Daimler announced that it would cease its activities in Iran.
Elmar Broek said Daimler's decision was understandable. But the effects of the sanctions, he continued, would be disastrous, because "the United States can impose its demands on companies that have interests in this country with its cross-border trade policy."
"In the end, it's the capacity and power of a market that will make the final decision," Brooke explained. "It means that we are economically relying on a policy that is fueling conflict in the Middle East instead of resolving it," he added.
US President Donald Trump withdrew from the nuclear deal with Iran in mid-May. US sanctions on Iran were reinstated on Tuesday, August 7. The US has threatened other countries not to do business with the Islamic Republic.
Trump has threatened that companies that do business with Iran will no longer have a place in the United States.
The European Union opposes new sanctions on Iran and wants to find a mechanism to support European companies in entering the Iranian market. The EU is considering providing requirements so that these companies can seek compensation from the United States for the costs and losses they incur as a result of leaving the Iranian market.
Source: DW
