The European Union launched its much-anticipated Iran trade mechanism today to an audible meh from the Donald Trump administration. The Instrument in Support of Trade Exchanges, or INSTEX, will initially be used to facilitate the sale of food, medicine and medical devices — all humanitarian goods that the US government has previously said it has no problem with.
Why it matters: The US sanctions work-around is central to European countries’ efforts to keep the 2015 Iran deal alive by allowing Tehran to benefit from its commitment to restrict its nuclear program. The Iranians have cautiously welcomed the new mechanism: Foreign Minister Mohammad Javad Zarif called it a “long overdue first step” on Twitter and Deputy Foreign Minister Abbas Araghchi told state television “we hope it will cover all goods and items.”
