A weapon in the EU trade arsenal – what is the ‘Anti-Coercion Instrument’?published at 13:37 GMT
13:37 GMT
Hugh Schofield
Paris Correspondent
Image source, EPA/Shutterstock
Earlier, we reported that Macron’s team said he will request, on behalf of France, that the European Union activates its “anti-coercion instrument” if the United States imposes tariffs in the standoff over Greenland.
The “Anti-Coercion Instrument” (ACI) which President Macron has spoken of was approved by Brussels in 2023 in order to deter attempts by outside powers to force policy changes on the EU or member states.
At the time the main threat was seen as coming from China, which had recently “punished” Lithuania for its links with Taiwan by putting restrictions on bilateral trade.
Today there would appear to be a clear-cut case of another outside power – the United States – using commercial muscle to change European policy on Greenland.
In these circumstances, the “anti-coercion instrument” is an added weapon in the EU trade arsenal.
If there is agreement that coercion has been attempted by an outside power, and if negotiations to resolve the conflict fail, then the EU has enhanced powers to retaliate “within international law”.
According to the EU, “The ACI permits import and export restrictions to be placed on goods and services, but also on intellectual property rights and foreign direct investment.
“Additionally, the ACI enables the imposition of various restrictions on access to the EU market, notably to public procurement, as well as the placement on the market of products under chemical and sanitary rules.”
The ACI has never yet been used. Last year, during the negotiations over tariffs between the US and the EU, there was talk of the EU invoking it but it never happened.