Yes, the world leaders laughed at Trump. But there was another less obvious sign of diminishing US influence.

BERLIN – For a president who stressed that the United States should not make fun, the speech of the American General Assembly of Donald Trump, last Tuesday, had to be a serious blow. First, world leaders scoffed at him when he boasted of what he described as his unprecedented achievements. Then, the best German diplomats smiled at his suggestion that they were "totally dependent" on Russia – well aware that the investigators are investigating the dependence of his own companions on the Kremlin.

The laughter and smiles were viral videos, but there was another, less noticeable, sign of diminishing US influence, which erupted on the sidelines of the General Assembly session. As Trump pointed to US "sovereignty," the EU, Russia, and China announced plans to bypass US sanctions imposed on Iran by Trump in May.

May 's decision to withdraw from the Iranian nuclear deal of the Obama era was supposed to force Europe to do the same and put pressure on Iran so that it would be easier for them to do so. he renegotiated the agreement.

Neither one nor the other has happened so far.

Instead, US pressure appears to be emerging as an alternative payment system that could protect some non-US companies from US sanctions and allow Iran to export oil and other goods to the United States. companies from the European Union and others. The latest announcement came after the US adopted a blocking law updated last month with the same goal. This earlier initiative, however, required European companies to seek compensation from the US Treasury Department, with an uncertain outcome.

"This will mean that EU member states will create a legal entity to facilitate legitimate financial transactions with Iran, which will allow European companies to continue trading with Iran in accordance with EU law. European and could be open to other partners in the world »High Representative for Foreign Affairs Federica Mogherini said on Tuesday.

Given the unverified nature of current EU efforts, there are reasons to remain skeptical about the ability of these plans to reassure international companies to stay in Iran. For some, the risk of being hit by US sanctions risks outweighing the benefits of exploring a new market that was limited until recently.

On Wednesday, the German trade and industry association DIHK said German exports to Iran had dropped 18 percent since Trump announced he would reimpose sanctions on his country. German automaker Volkswagen announced last week that it was pulling out of Iran, yielding to US pressure.

Overall, German companies exported $ 3.4 billion worth of goods to Iran last year. But Germany exported goods worth $ 117 billion to the United States in 2017, indicating that most companies were still much more dependent on trade with the United States as opportunities for exploration in Iran. In the short term, only small and medium-sized European companies that rely more on their trade with Iran than the United States should participate in the EU. plans.

In the long run, however, the EU's efforts could dismantle US dominance of international payment systems – a status that has given US leaders a powerful instrument of economic and political influence in the past, for example by stopping exports Chinese to North Korea and other rogue states.

Trump officials have naturally not been amused by the US announcement this week, supported by France, Britain, Germany, Russia and China. US Secretary of State Mike Pompeo said: "This is one of the most counter-productive measures imaginable for regional and global peace and security."

Pompeo said that he was "disturbed and deeply disappointed".

But European governments have rejected US criticism, saying that even if there were flaws, the current deal is better than any deal. While EU leaders believe that the US decision to withdraw from the Iran agreement has violated international law, but that the European Union is speeding up the dismantling of a sanctions system without offering an alternative for put pressure on countries like Russia and China sanctions in future scenarios.

So far, it is still unclear how the alternative payment system of the EU could work, but one of the most likely options is a credit system allowing companies with links to Iran to sell goods without transferring real money. This system would make it almost impossible for US authorities to monitor trade between European and Iranian companies and minimize the risk of sanctions.

Both on stage and behind the scenes, the Tuesday session of the US General Assembly showed how isolated the Trump administration was after heightened tensions with his enemies and unleashed new spies with his allies.

Read more:

The new train line from China to Iran sends a message to Trump:

Why are all the other countries in the Iranian nuclear agreement in agreement?

Trump accused Germany of becoming "totally dependent" on Russian energy in the UK. The Germans just smiled.