MEPs Approve Trade Anti-Coercion Instrument

Members of the European Parliament have overwhelmingly approved the Anti-Coercion Instrument put forwards by the Commission earlier in the year. Euractiv: "The instrument enables the EU to take countermeasures like import tariffs, trade restrictions, or public procurement measures against third countries that try to pressure EU member states or institutions to do their bidding." MEPs voted 528 in favour, with 24 opposed and 19 abstentions.

• German SPD MEP Bernd Lange, who led the EP's position in negotiations with the Commission over the ACI, posted on X shortly after the vote "While this tool should act as a deterrent, we will also be able to take action if necessary to defend the Union’s sovereignty."
• How the ACI operates: The EU has a one-year timeline from beginning an investigation to deciding on the response under the ACI. Initially the Commission decides if a third country has sought to coerce the EU/member state through trade. A qualified majority vote is then needed in Council to proceed. If this threshold is reached, then Commission, Council and Parliament must agree jointly on countermeasures.
• The existence of the ACI risks run-ins with trade powers such as the US and China. Trump-era tariffs were viewed as a key factor inspiring the ACI, while China's trade sanctions against Lithuania following the establishment of a Taiwan Representative Office in Vilnius also raised EU hackles.