Monday, April 8, 2019

MOCK Q.409- With reference to the news what is “INSTEX” ?


MOCK Q.409- FRAMED FROM "THE HINDU"

Q. With reference to the news what is “INSTEX” ?

A) It is a 2000 ft long device to start clean up in the North Pacific Ocean

B) It is a transaction channel that will allow companies to continue trading with Iran despite US sanctions

C) It is a natural gas pipeline being developed with the participation of the Asian Development Bank

D) It is the rule book that sets out how countries will provide information about their Nationally Determined Contributions

Ans. B

• The transaction channel will allow European businesses to trade with Iran, despite strict US sanctions.

• Though the payment channel is a project of Britain, France and Germany, it will receive the formal
endorsement of all 28 EU members.

• It will support legitimate European trade with Iran, focusing initially on the sectors most essential
to the Iranian population such as pharmaceutical, medical devices and agri-food goods.

• In the longer term, INSTEX aims to be open to third countries wanting to trade with Iran.

• However, INSTEX is not yet operational as it needs Iran to set up a parallel structure of its own,
which may take some time to complete.

• While it is aimed at small and medium-sized companies, it is expected to send an important message to
Iran about Europe's commitment to keep the nuclear deal alive.

Objective

The launch of the special payment channel is a clear and practical demonstration of Europe's commitment
to continuing the nuclear deal.

It, however, does not in any way preclude the European Union from addressing Iran's hostile and
destabilising activities.

Europe has toughened its tone on Iran's ballistic missile programme, human rights record and
interference in Middle East conflicts.


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