European Parliament approves new trade instrument to counter economic blackmail

BRUSSELS, Oct 3 (KUNA) -- With 578 votes to 24 and 19 abstentions, the European Parliament approved on Tuesday a new trade instrument to enable the EU to respond, should the EU or member states face economic blackmail from a foreign country.

The Anti-Coercion Instrument (ACI) seeks to protect EU and member state sovereignty in a geopolitical context where trade and investment are increasingly weaponised by foreign powers, said an EP press release.
According to the regulation, economic coercion occurs when a non-EU country attempts to pressure the EU or a member state into making a specific choice by applying, or threatening to apply, trade or investment measures.
The deterrent aspect of the instrument includes restrictions in trade of goods and services, intellectual property rights and foreign direct investment. Imposing constraints on access to the EU public procurement market, capital market, and authorisation of products under chemical and sanitary rules will also be possible.
Bernd Lange, rapporteur and Chair of the EPآ’s Committee on International Trade, said: "This instrument enables rapid reaction against coercive measures, against pressure from other countries." "We now have a broad range of countermeasures at our disposal and have filled our toolbox with defensive instruments. While this anti-coercion tool should act as a deterrent, we will also be able to take action if necessary to defend the European Unionآ’s sovereignty," said the German MEP.
The new regulation is expected to be adopted by the EU Council of Ministers later this month in October.
Observers here note that the new EU measures are primarily targeted against Russia and China. (end) nk.aa.