John Smith spoke to Global Trade Review about how escalating political tensions between the U.S. and Iran are placing further pressure on European firms hoping to revive trade with the embattled Middle Eastern state.
“There was already very little incentive for European banks to want to participate in Instex,” a controversial mechanism developed to sidestep U.S. sanctions against banks that would facilitate trade betwee Europe and Iran, according to John. “The rewards of food, medicine, and medical device trade with Iran are not substantial, and for many of them not worth the risks of running afoul of U.S. sanctions and the wrath of the U.S. government. This [recent] development makes that even more of a difficult prospect.”
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