Differences in approach on Gulf issues are becoming a major point of contention between the United States and the countries of the European Union. These differences reflect the larger processes of change in the North Atlantic alliance since the end of the Cold War. The EU is emerging as an increasingly unified economic bloc that acts as a unitary player in the world economy. It is becoming a major competitor of the United States on trade and investment issues with the Gulf states. On security issues, the EU has not achieved that same level of internal coherence. The United States enjoyed the support of a number of important EU governments in the recent war against Iraq, even as France and Germany took very public positions against Washington. Washington will continue to pursue bilateral security relations with European states on Gulf issues, in part to prevent the emergence of a unified European competitor on strategic Gulf issues. On the economic front, the EU is emerging as a major commercial competitor of the US in the Gulf region. Washington and Brussels have had very different views on how to deal with Iran for well over a decade. EU companies have already established advantages over American companies in Iran. In the new Iraq, it remains to be seen how
