Belgium, (Brussels Morning Newspaper) On Tuesday 28th March, the European Parliament, and the Council reached a provisional agreement on the legislative process of the Anti-Coercion Instrument (ACI).
This tool supports the EU’s strategic and economic interests and intends to discourage third countries from using trade or investment-related measures to economically pressure the EU and its member states. The anti-coercion instrument aims to encourage the discontinuation of coercive tactics through dialogue.
This is not the first time that the EU is trying to de-escalate coercion measures from third countries. The European Commission published this proposal on 8 December 2021 at the request of the Council and the European Parliament. Later, on 10 October 2022 the proposal was amended and endorsed by the INTA Committee of the European Parliament.
Valdis Dombrovskis, Executive Vice-President for an Economy that Works for People and Commissioner for Trade, said: “Today the EU is taking a step closer to deterring economic coercion against the EU and its Member States. Progress on the Anti-Coercion Instrument is key to reinforce our trade agenda, giving the EU the tools to preserve open trade and address risks in a targeted way. I am looking forward to sealing the deal at the final trialogue, so we can have this instrument in place as quickly as possible.”
The provisional agreement includes decision-making processes with the Council determining what constitutes economic coercion. Among the agreed measures that could be applied to the third country as a response to economic coercion is increased customs duties, import or export licenses, or restrictions in the field of services or public procurement.
According to the Council of the European Union, ACI legislation will come into force after 20 days of its publication in the Official Journal of the EU.
Bernd Lange (S&D, DE), rapporteur and Chair of the Committee on International Trade commented: “Overnight we made huge strides in shaping this new instrument to be an effective deterrent and a powerful tool against coercion. With a broad list of countermeasures, a framework for obtaining reparation for injury, clear timelines and Parliament’s close involvement throughout the process, we are close to finalising a deal which will equip the European Union to defend itself robustly when faced with economic blackmail.”
Marie-Pierre Vedrenne, Renew Europe MEP and shadow rapporteur on this dossier welcoming this agreement said: “With today’s agreement on the anti-coercion instrument, the European Union is strengthening itself and asserting its open strategic autonomy in an uncertain global context. We have and will continue to advocate dialogue with our partners. However, the EU must be able to defend its interests and it will now have an effective deterrent against blackmail by third countries.”
