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EU agrees trade defense against economic coercion

By Philip Blenkinsop

BRUSSELS (Reuters) – The European Union on Tuesday agreed to allow retaliation against countries that exert undue economic pressure on EU members to change their policies, a move aimed at Take action as a deterrent.

Representatives of the European Parliament and the Council, the bloc of EU countries, reached an agreement on the Anti-Coercion Instrument (ACI) earlier on Tuesday.

The proposal aims to address the spillover effects of geopolitical tensions on trade. EU member states have accused the administration of former U.S. President Donald Trump and China of using trade as a political tool.

The embassy there.

The EU says Beijing has imposed a blockade on its exports and is forcing companies to remove Lithuanian content from supply chains when exporting to China.

The EU is challenging China to negotiate the issue at the World Trade Organization, but such cases could take more than a year to resolve.

Under the ACI, the EU will determine whether economic measures by third countries are intended to coerce a change in policy from the EU or one of its members.

If the dialogue fails, the bloc could impose restrictions such as raising import duties or limiting access to EU public tenders.

Some EU countries have been skeptical of the measure, fearing it could become protectionist and spark a trade war.



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