EU's Anti-Coercion Strategy: A New Trade Defense Shield

The European Union has introduced a formidable tool to counteract economic duress from third countries. Dubbed the Anti-Coercion Instrument (ACI), this legislative framework permits the 27-nation bloc to impose wide-ranging measures on nations attempting to force policy changes in EU member states. Primarily targeting U.S. under President Donald Trump, the ACI aims to protect EU economic interests by deploying measures beyond conventional tariffs.

Among the ACI's arsenal is an array of options, including both import and export curbs through quotas or licensing, alongside potential exclusions or penalty adjustments for U.S. bids in the EU's massive public procurement market. Additionally, it could affect services provided by major U.S. companies such as Amazon and Netflix by targeting areas where the U.S. enjoys a trade surplus.

This instrument, birthed from EU grievances over previous U.S. trade strategies and aggressive Chinese diplomacy, seeks to deter coercion effectively while aiming to repair any incurred injury. The European Commission plays a pivotal role, taking anywhere from months to a year to identify and confront coercion, thereby providing a robust framework to guard the EU's economic sovereignty.

(With inputs from agencies.)