THE United States and Europe avoided a damaging confrontation over trade sanctions yesterday as they made progress towards breaking the impasse that has left British companies facing American-imposed penalties for dealing with nations that sponsor terrorism, write Benedict Brogan and Rory Watson.
Tony Blair and Bill Clinton spoke optimistically at the close of the sixth US-Europe summit in London, although sources admitted the outline of a deal could still be blocked by America's Republican-controlled Congress.
The row over sanctions overshadowed the day's negotiations between Mr Blair, Mr Clinton and European Commission president Jacques Santer.
It centres on American legislation which imposes financial penalties on companies that do business with Iran, Libya and Cuba.
The outline agreement falls short of lifting the sanctions but allows the US government to award case-by-case waivers to specified companies.
Meanwhile, EU Ministers in Brussels yesterday agreed new measures to prevent striking lorry drivers from blockading Europe's roads and bringing hardship, and even bankruptcy, to many British companies.
The initiative covers all EU countries but is clearly directed at France where road hauliers have brought the country to a standstill three times in the past year.
Under the agreement, any government facing a domestic strike which could undermine the EU's internal market by preventing goods moving from one country to another, must act within five days at most to remove any blockades.
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