European Parliament Passes Anti-Economic Coercion Trade Tool
The European Parliament on Oct. 3 voted to pass the bloc's proposed Anti-Coercion Instrument, which will allow EU to impose countermeasures, including tariffs and other trade and investment restrictions, on third countries for economic coercion (see 2306060019).
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The regulation was crafted to target a foreign nation's bid to pressure the EU into making a specific choice by applying or threatening trade measures. This type of coercion is not covered by the World Trade Organization or its dispute settlement system, the parliament noted. The measure -- approved 578-24, with 19 abstentions -- allows for four months of investigation of potential coercion by the European Commission, then six months to outline an "appropriate response."
Bernd Lange, rapporteur and chair of the Committee on International Trade, said the instrument allows for "rapid reaction against coercive measures, against pressure from other countries. We have introduced clear timelines and clear definitions to say what a coercive measure is and how to react to it. We now have a broad range of countermeasures at our disposal and have filled our toolbox with defensive instruments."
The regulation now moves to the European Council for formal adoption, which is expected later this month, the parliament said. After that, the measure will take effect 20 days after being published in the Official Journal.