20 Sep 2019
The parliamentary foreign affairs commission on Tuesday approved a draft resolution supporting Belgium’s membership of INSTEX, the European special purpose company that is required to allow trade with Iran despite American sanctions.
In 2015, an agreement was reached between Iran and the five members of the UN Security Council as well as Germany to oversee the Islamic republic’s nuclear-related activities.
The US decided in 2018 to withdraw from this agreement and reimpose sanctions against Iran that had to be introduced progressively in accordance with the deal baptised JCPoA (Joint Comprehensive Program of Action).
The European Union and the other signatories want to pursue the implementation of this agreement without entering into conflict with the United States.
As a result of the extra-territorial effects inherent in Washington’s sanctions, companies trading with Iran risk being excluded from accessing the American market.
A compensating mechanism, baptised INSTEX, was therefore conceived to bypass the impediment. It is based on an equalisation between European importers and exporters and their Iranian counterparts. INSTEX is limited to the areas of health and food processing.
Read more at The Brussels Times
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