Page 8 - IRANRptDec19

2.4​ ​Several European countries to join Instex mechanism for trading with Iran
Extensive statement
Belgium, Denmark, Finland, the Netherlands, Norway and Sweden are set to join the much-delayed Instrument in Support of Trade Exchange (Instex) originally conceived as a payment mechanism that would allow European companies to conduct trade with Iran knowing that they would be shielded from US sanctions.
The Swedish government announced the planned move on November 29. Whether it will be of more than symbolic value in Europe’s attempt to persuade Iran to comply with, and hold together, the 2015 nuclear deal is, however, open to question. The accord—under which Iran is supposed to comply with measures designed to bar its way to any potential development of a nuclear weapon in return for the lifting of international sanctions—could be set to fall to pieces as soon as December because Iran accuses Europe of not doing enough to protect its trade and economy from US sanctions brought in after the Trump administration unilaterally yanked Washington out of the nuclear deal in May 2018.
Instex—put together by France, Germany and the UK—is actually an example of what the Iranians are complaining about. Europe started out with ambitious plans to conduct trade through the Paris-headquartered mechanism that the US would find sanctionable. However, of late, it has, at most, appeared to only explore Instex trading in food and humanitarian items that would not infringe the American sanctions regime.
Despite scepticism that an Instex with several more members will carry much more importance in attempts to save the nuclear deal than an Instex with just a handful of members, the countries planning to join the trade channel put out an extensive statement on their move, saying: “Belgium, Denmark, Finland, the Netherlands, Norway and Sweden attach utmost importance to the preservation and full implementation of the Joint Comprehensive Plan of Action (JCPOA) [the formal name of the nuclear deal] on Iran's nuclear programme by all parties involved. The nuclear agreement was unanimously endorsed by the UN Security Council (UNSC) and is a key instrument for the global non-proliferation regime and a major contribution to stability in the region.
“In light of the ongoing European support for the agreement and the ongoing efforts to implement the economic part of it and to facilitate legitimate trade between Europe and Iran, we are now in the process of becoming shareholders of the Instrument in Support of Trade Exchange (Instex) subject to completion of national procedures.
“In this context, it is crucial for the Islamic Republic of Iran to return without delay to full compliance with the terms and provisions of the nuclear agreement.”
Iran on November 28​ ​rejected as “irresponsible”​ ​comments by France that it is seriously contemplating triggering a complaints mechanism within the nuclear deal that could lead to “snap-back” UN sanctions. France relayed its latest standpoint following​ ​a European Union announcement
8​ IRAN Country Report​ December 2019 www.intellinews.com