The EU has described steps such as increased customs duties, import or export licenses, restrictions in the field of services, public procurement, and other trade restrictions imposed by other countries as examples of anti-coercion measures.
By Abhimanyu Sharma
October 3, 2023
The European Parliament has ratified the Anti-Coercion Instrument (ACI) with 578 votes in favor, 19 abstentions, and 24 votes against the instrument.
The ACI will come into effect in a few weeks and aims to enable the European Union (EU) to respond better to economic coercion and defend the trade interests of its member nations more effectively on the global stage.
The EU has described steps such as increased customs duties, import or export licenses, restrictions in the field of services, public procurement, and other trade restrictions imposed by other countries as examples of anti-coercion measures.
It has stated that the ACI is designed to de-escalate and induce the discontinuation of coercive measures through dialogue.
If ensuing dialogue fails with a country engaging in coercive trade practices, the ACI will allow the EU to resort to countermeasures, such as imposing tariffs, imposing restrictions on trade in services, and limiting access to foreign direct investment or public procurement.
On June 6, 2023, the European Parliament and the Council reached a final political agreement on the Anti-Coercion Instrument (ACI). The agreement includes a legal framework for the 27-nation body to request damages from any country that damages the economies of any EU member by using economic coercion.
The agreement also covers the Council's role in ascertaining the incidence of economic coercion, decision-making arrangements, and timeframes for EU action under the ACI.
Source: cnbctv18.com