Brussels: Europe and the Arabs
The European Commission in Brussels said that the Anti-Economic Coercion Mechanism entered into force today, which provides the European Union with the necessary means to deter and respond to economic coercion, and thus better defend its interests and the interests of member states on the global stage.
According to a statement by the Commission, the ACI is designed first and foremost to act as a deterrent against economic coercion.
In cases where coercion still occurs, the tool provides a structure to respond in a well-calculated way to stop the coercion. It gives the EU a wide range of possible countermeasures when a state refuses to remove coercion. These include the imposition of tariffs, restrictions on trade in services and trade-related aspects of intellectual property rights, and restrictions on access to foreign direct investment and public procurement.
The Regulation provides a legal framework for responding to coercion and sets out the means available to the EU to investigate and make decisions. It includes time frames and procedures for stakeholders affected by coercion to contact UNHCR and undertake stakeholder consultation before taking countermeasures.
Likewise, it provides a framework for the European Union to ask a third country to repair damage caused by economic coercion.
The European Union will continue to cooperate with like-minded partners and allies to address economic coercion, and this new tool constitutes an important addition to international efforts in this area.
According to a Commission statement, “The European Union and its Member States have become the target of deliberate economic pressure in recent years. The European Commission proposed the ACI in 2021 as part of its new trade strategy, as a specific tool to address economic coercion. This is defined as a situation in which a third country attempts to pressure The European Union or a Member State to make a choice by applying, or threatening to apply, measures affecting trade or investment against the European Union or a Member State. This instrument can be triggered by a wide range of coercive practices.
The European Commission will take into account stakeholder input when considering whether to activate the appropriate tool or countermeasure in individual cases, and companies are encouraged to come forward with relevant information. In addition, a single point of contact has been established to assist in the implementation of this instrument. Any stakeholder may confidentially provide relevant information regarding incidents of economic coercion, or the application of ACI generally, using a single point of contact.
The ACI and any actions that may be taken under this instrument are consistent with the EU's international obligations and are fully based on international law. The ACI is just one of the important tools being introduced to help strengthen Europe's economic security, as part of the European Economic Security Strategy presented by the European Commission in June 2023.