The long-awaited special purpose vehicle to facilitate Iran-EU trade in the face of renewed US sanctions has officially been put in place in France. It’s waiting for a similar Iranian entity and several other factors to become operational.
The project is part of a bigger long-term strategic economic cooperation agreement between Iran and Syria that was signed in Damascus by Iran’s First Vice President Eshaq Jahangiri and Syrian Primer Minister Imad Khamis in Damascus on Monday.
The documents allow Iranian direct investment as well as joint ventures in a wide range of fields. The most important is a banking agreement that will further facilitate trade between the two countries.
Syrian industry minister says such companies can provide the materials that are used in a hundred other industries which will boost economic output.
Eying Syria’s multi-billion-dollar reconstruction market, Iran private sector has put on table a wide range of proposals to bolster Syrian economy and breathe fresh air into the Arab country’s destroyed industry.
The joint committee from the Syrian part conplements a same committee in Iran that are aimed at boosting bilateral economic relations. They lay the groundwork for the creation of a joint chamber of commerce.
The building is inside Damascus Free Zone that is only one kilometer away from the city centre.
Germany, France and Britain say they’ve established and registered a commercial trade mechanism with Iran, called Instrument In Support of Trade Exchanges (INSTEX), that will bypass the unilateral US sanctions.
Tehran is offering the Damascus government its high expertise and modern industries aiming at aiding the Arab country in post-war era.
Data from Chinese General Customs Administration show that China-Iran trade has fallen dramatically in the two months following the reimposition of US secondary sanctions. Chinese exports to Iran have collapsed from about $1.2 billion in October 2018 to just $400 million in December 2018—a fall of nearly 70%.