Trade – Port of Antwerp – Photo © European Union 2023
(BRUSSELS) – The EU Parliament and Council reached fina political agreement Tuesday on a new tool to enable the EU to respond to economic coercion and defend its interests on the global stage.
The Anti-Coercion Instrument (ACI) is first and foremost designed to act as a deterrent against any potential economic coercion. If economic coercion nevertheless takes place, the ACI provides a structure to get the third country to stop the coercive measures, through dialogue and engagement.
If engagement fails, it gives the EU access to a wide range of possible countermeasures against a coercing country. These include the imposition of tariffs, restrictions on trade in services, and restrictions on access to foreign direct investment or public procurement.
The agreement reached today includes a legal framework for the EU to request that the third country repair the injury caused by its economic coercion. It also covers decision-making arrangements, in particular the Council’s role in determining whether the EU or a Member State is the target of economic coercion, as well as timeframes for EU action under the instrument.
The agreement is “a major step forward for the EU,” said Trade Commissioner Valdis Dombrovskis: “It sends a clear signal to our global partners that we reject all forms of economic coercion by third countries. It will allow us to be more assertive in defending our legitimate rights and interests. The ACI provides an important building block for the EU’s economic security and its Member States.”
The EU stresses it will continue to cooperate with like-minded partners and allies to address economic coercion, and the ACI is a significant addition to international efforts in this domain.
The Parliament and Council now have to complete the procedures for approval of the new Regulation before it can enter into force. Entry into force is expected in the autumn of this year.
Anti-Coercion Instrument - guide
