The European Parliament by a majority of votes supported the law that allows the EU to take measures against countries that economically put pressure on the states of the bloc. For example, to demand the removal of trade restrictions imposed by China on Lithuania.
Reuters writes about it.
Lawmakers voted 578 to 24 to repeal the Anti-Coercion Instrument (ACI). The law will enter into force in the coming weeks.
The new law should counter geopolitical tensions in trade, although it is primarily seen as a deterrent.
EU governments will be able to vote on whether a third countryʼs economic measures are coercive. The third country can be asked to compensate for any damage caused. If it refuses, the bloc will impose restrictions: raise import tariffs or limit access to EU public tenders.
In order for the EU to take action, the support of a "qualified majority" of at least 15 EU countries with 65% of the blocʼs population is required.
An EU report on the Anti-Coercion Instrument says that former US President Donald Trumpʼs administration, China and Turkey have used trade as a political tool.
- When Lithuania allowed Taiwan to establish a de facto embassy, the EU says Beijing blocked Lithuanian exports and pressured companies not to export Lithuanian goods to China. The EU turned to the World Trade Organization because of this.