May 16, 2018
How the exit from the Iran deal will hurt the effectiveness of U.S. sanctions
After more than a year of negotiations and crises, President Trump decided to withdraw from the Iran nuclear deal last week as he announced that the United States would unilaterally reimpose sweeping sanctions targeting the Iranian economy. In announcing this decision, Trump drew a direct line to his ongoing negotiations with North Korea and emphasized how his decision would bolster U.S. leverage over the regime in Pyongyang. The decision, he said, demonstrates that “the United States no longer makes empty threats.”
While withdrawal will let United States once again use aggressive sanctions against Tehran, this decision will – paradoxically – negatively affect Washington’s ability to successfully use economic pressure in the future. These measures have been one of the most powerful U.S. foreign policy tools – what brought Tehran to the negotiation table in the first place. Yet, the U.S. administration is putting this powerful instrument at risk.
The damage caused by short-sighted use of sanctions on Iran will spread because these measures do not exist in isolation. Each case sets a precedent that informs future use. Separate sanctions episodes are therefore inextricably linked. Muddle on Iran sanctions will become muddle on Russia sanctions. Uncertainty over Venezuela will become uncertainty over North Korea.
The reintroduction of sanctions as part of the termination of the Iran deal will harm U.S. credibility in two key areas required for the success of any sanctions program.
Read the Full Article at the European Leadership Network
More from CNAS
-
The Cost of Economic War
Podcast
Sanctions, not bombs, have been the weapon chosen to take on the Putin regime. BBC speaks with macroeconomist Rachel Ziemba about the effectiveness of modern economic statecra...
By Rachel Ziemba
-
Harnessing the Metaverse: States of All Sizes
Commentary
With the innovation of the metaverse and its capacity to support different methods of social interaction outside of our physical universe, there is opportunity for states to d...
By Michael Greenwald
-
Want to Help Taiwan? Support a Muscular Japan
Commentary
Japan's political leadership must fight to sustain Abe's spirited internationalism, despite mixed political support at home....
By Daniel Silverberg
-
Sanctions, Cyber, and Crypto: How Pyongyang Can Exploit the War in Ukraine
Commentary
If Russian forces completely isolate Donetsk and Luhansk from the rest of Ukraine, North Korea could expand its sanctions evasions campaigns in eastern Europe....
By Jason Bartlett
