-EU will not follow Trump’s unpredictable trade policy
Despite U.S. President Donald Trump’s ongoing steps to increase taxes on imports from China and to pressure Iran with new sanctions, it is evident the European Union is not following suit in its actions. The main principle of the founding fathers of the European Union was to be able to trade freely, and share prosperity and wealth within the continent post World War II. Following the U.S.’s unpredictable trade policies, Brussels wants to make it known that the EU would rather prioritize their own regional security and economic interests as opposed to following Trump, whose success as a presidential candidate for a second term is not guaranteed.
Currently, amid U.S. plans to re-impose sanctions on Iran, the European Union and heavyweight members Germany, France, and Britain on Monday expressed "deep" regret, and vowed to protect Europeans doing "legitimate" business with Iran.
"We deeply regret the re-imposition of sanctions by the U.S., due to the latter's withdrawal from the Joint Comprehensive Plan of Action (JCPOA) [the formal name for the Iran deal]," a statement issued by EU Foreign Policy Chief Federica Mogherini said along with French Foreign Minister Jean-Yves Le Drian, German Foreign Minister Heiko Maas, and British Foreign Minister Jeremy Hunt.
"The remaining parties to the JCPOA have committed to work on, inter alia, the preservation and maintenance of effective financial channels with Iran, and the continuation of Iran's export of oil and gas. On these, as on other topics, our work continues, including with third countries interested in supporting the JCPOA and maintaining economic relations with Iran."
In July 2015, the P5+1 group of countries -- the U.S., Britain, France, China, Russia, and Germany -- signed the nuclear deal with Iran. Since 2015, the agreement, which was based on mutual understanding of the need for security in the region, was successful. However, Brussels saw that the years of work with Iran to reach this deal could be lost with the U.S.’ stance.
The EU’s economic relations with Iran have strengthened in recent years. In 2017, the EU exported over €10.8 billion worth of goods to Iran, the largest value of which consisted of machinery and transport equipment at €5.5 billion, or a 50.9 percent share of total exports to Iran, an 18.1 percent share with chemicals at €1.9 billion and manufactured goods at €0.9 billion, or 8.9 percent share.
The EU imported goods worth over €10.1 billion from Iran in 2017. The largest share of EU imports from Iran were energy-related with €8.9 billion worth of mineral fuels accounting for 88.7 percent of EU imports from Iran, followed by manufactured goods at €0.6 billion, or 6.4 percent, and food costing €0.3 billion, or a 3.3 percent share.
In 2017, EU imports from Iran increased by 83.9 percent and EU exports increased by 31.5 percent.