Tehran, Iran, May 15
Iran's trade with other countries has been affected by the US sanctions, and many hoped that launch of Instrument in Support of Trade Exchanges (INSTEX) would improve the situation.
"Under the current conditions, prices for medicines in Iran have increased alongside with the cost of Iran's trade operations. Although Iran only wants to buy medicines, foreigners are afraid of trade with Iran," Ali Shariati, head of food industries at Iran Chamber of Commerce, Industries, Mines and Agriculture said in an interview with Trend.
In his view, due to the US sanctions affecting Iran’s trade, any mechanism that can improve the conditions shall be supported. "Iran's aim is not only to export to Europe, but to reduce the world`s concerns on dealing with Iran through the INSTEX. Given that everyone is afraid to trade with us, launching the financial channel of INSTEX will help to normalize the trades," he added.
"We believe that many investors are scared, partially due to psychological pressure and propaganda against Iran, so anything that can reduce the tension is good. The Chamber of Commerce is optimistic about toward INSTEX, which sends positive message to our trade partners," said Ali Shariati.
On January 31, three European countries including France, Germany and the UK (shortened as E3), officially announced the creation of the Instrument in Support of Trade Exchanges (INSTEX), a special purpose vehicle, to allow them bypass US sanctions on trade with Iran. INSTEX facilitates non-dollar trade with Iran, allowing European companies to trade with the Islamic Republic without being hit by the sanctions.
US President Donald Trump declared Washington’s withdrawal from the nuclear deal with Iran in May 2018. Trump also announced the restoration of all sanctions against Iran, including secondary ones against other countries doing business with Iran. The United States re-introduced part of the sanctions against Iran on August 7, 2018, while the second batch of the sanctions came into effect on November 5, 2018.