Menu
Latest
Menu
Latest
News

EU provisionally agrees on mechanism against economic coercion

29 March 2023

Early on Tuesday (28 March) it was announced that representatives of the European Parliament and the Council reached a provisional deal on a mechanism to allow member states to retaliate against countries that pressure them to change their economic policies.

The anti-coercion instrument (ACI) is designed to counter a spillover of geopolitical tensions into trade. A prominent example of such coercion includes that of China against Lithuania after Vilnius allowed Taiwan to open an embassy there, prompting Beijing to block Lithuanian exports and pressuring companies to remove Lithuanian components from supply chains.

Under the ACI, a member state can appeal and EU governments would then vote on whether a third country's economic measure amounted to coercion. If the dispute remains unresolved, the bloc could then impose restrictions such as higher import tariffs or limited acces to EU public tenders.

The ACI is however designed only to be used as a "last resort when there is no other way to address economic intimidation".

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."

source: commonspace.eu with agencies
photo: Reuters

 

Related articles

Editor's choice
News
Borrell tells the European Parliament that the situation in Afghanistan was critical, but the EU will remain engaged
Trending

Borrell tells the European Parliament that the situation in Afghanistan was critical, but the EU will remain engaged

9 June 2021
Borrell underlined that the European Union will make every effort to support the peace process and to remain a committed partner to the Afghan people. "Of course, we will have to take into account the evolving situation, but disengagement is not an option.  We are clear on that: there is no alternative to a negotiated political settlement, through inclusive peace talks.
Editor's choice
News
A new era of peace in the Eastern Mediterranean
Trending

A new era of peace in the Eastern Mediterranean

14 May 2024
A ground breaking meeting between the President of Turkiye, Recip Tayip Erdogan, and Greek Prime minister Kyriakos Mitsotakis, on Monday (13 May) is being hailed as the dawn of a new era of peace in the Eastern Mediterranean. Mitsotakis was in Ankara as the guest of the Turkish leader. There are no unsolvable problems between Athens and Ankara, President Recep Tayyip Erdoğan said, as he and Greek Prime Minister Kyriakos Mitsotakis praised the state of relations between the two neighbors while pledging to further enhance bilateral ties. "We had a constructive and positive meeting and discussed problems in Türkiye-Greece relations; We will solve problems through dialogue," Erdoğan said at a joint news conference with Mitsotakis. Erdoğan said that Ankara and Athens are committed to resolving issues via "cordial dialogue, good neighborly ties, and international law" as outlined in last year's Athens Declaration on Friendly Relations and Good-Neighborliness. Improvement of bilateral relations with Türkiye is yielding concrete and positive results, Greek Prime Minister Kyriakos Mitsotakis said "I can only begin by thanking you for the warm hospitality today in Ankara, it was a fourth meeting in the last 10 months, which I believe proves that the two neighbors can now establish this approach of mutual understanding, no longer as some exception, but as a productive normality that is not negated by the known differences in our positions," Mitsotakis said. He said bilateral relations have been progressing, as agreed by the parties, on three levels: political dialogue, positive agenda and confidence-building measures. "I believe that it is a positive development in a difficult time for international peace, but also for the broader stability in our region," the Greek leader said.

Popular

Editor's choice
News
A new era of peace in the Eastern Mediterranean
Trending

A new era of peace in the Eastern Mediterranean

14 May 2024
A ground breaking meeting between the President of Turkiye, Recip Tayip Erdogan, and Greek Prime minister Kyriakos Mitsotakis, on Monday (13 May) is being hailed as the dawn of a new era of peace in the Eastern Mediterranean. Mitsotakis was in Ankara as the guest of the Turkish leader. There are no unsolvable problems between Athens and Ankara, President Recep Tayyip Erdoğan said, as he and Greek Prime Minister Kyriakos Mitsotakis praised the state of relations between the two neighbors while pledging to further enhance bilateral ties. "We had a constructive and positive meeting and discussed problems in Türkiye-Greece relations; We will solve problems through dialogue," Erdoğan said at a joint news conference with Mitsotakis. Erdoğan said that Ankara and Athens are committed to resolving issues via "cordial dialogue, good neighborly ties, and international law" as outlined in last year's Athens Declaration on Friendly Relations and Good-Neighborliness. Improvement of bilateral relations with Türkiye is yielding concrete and positive results, Greek Prime Minister Kyriakos Mitsotakis said "I can only begin by thanking you for the warm hospitality today in Ankara, it was a fourth meeting in the last 10 months, which I believe proves that the two neighbors can now establish this approach of mutual understanding, no longer as some exception, but as a productive normality that is not negated by the known differences in our positions," Mitsotakis said. He said bilateral relations have been progressing, as agreed by the parties, on three levels: political dialogue, positive agenda and confidence-building measures. "I believe that it is a positive development in a difficult time for international peace, but also for the broader stability in our region," the Greek leader said.