Since the mid-1990s, US and European attitudes, strategies and
policies towards the Middle East have diverged. In the Middle East
peace process, Europeans have grown frustrated with the lack of
progress and with Washington's near-monopoly on diplomatic action,
and have begun to demand a greater role. On Iraq, the US insists on
strong military and economic containment of Saddam Hussein, while
some Europeans have started to press for a more rapid reintegration
of Iraq into the international community and are reluctant to use
or threaten force. The issue of how to deal with Iran has been most
divisive of all, with the US and Europe deeply divided over whether
they should contain, or engage, Tehran. Transatlantic tensions over
the Middle East are damaging for three main reasons. They reduce
the effectiveness of allied policies; undermine NATO's cohesion
when its future is no longer guaranteed by a common threat; and
threaten to spill over into the economic domain. This paper
examines the reasons for these potentially damaging differences,
assesses the prospects for improving transatlantic cooperation in
the region and suggests approaches that may help to bring this
about. Its main policy conclusions are: On the Arab-Israeli
conflict, as long as the peace process is moving forward, or has
reasonable prospects of doing so, the US is probably right that
Europe's formal involvement in direct peace talks would not be
helpful, particularly if such a role aimed to promote policies
different from those of the US. If the peace process stalls
completely, however, it will be difficult for Washington to justify
opposing a more active European role. On Iraq, the US-led policy of
containment is correct, and economic sanctions should remain in
place until Baghdad complies fully with UN Security Council
disarmament resolutions. However, in exchange for Europe's
agreement to contribute to Iraq's military containment, the US,
like Europe, should abide by the letter and spirit of these
resolutions, even if this means agreeing to lift restrictions on
oil exports if Iraq complies in full. Failing to do so could
undermine global support for the integrity of the UN system,
ultimately leaving the US, and perhaps the UK, isolated in
maintaining a policy that might not be sustainable in the long
term. On Iran, a transatlantic compromise would need to include an
agreement by the US not to impose sanctions against European
companies doing business with Iran, as long as Europe offered
unstinting support in combating terrorism and helping to contain
the development of weapons of mass destruction. The US should also
seek agreement with the European Union on which Iranian actions
would justify sanctions or other punitive measures. The paper
concludes by examining institutional changes that might help to
promote transatlantic cooperation on the Middle East.
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