The European Parliament (EP) has approved the establishment of a new mechanism that will allow commercial retaliation against foreign countries that exert economic pressure to change the policies of European Union (EU) member countries.
At the EP General Assembly session held in Strasbourg, the law establishing a commercial retaliation mechanism called “anti-pressure instrument” against the economic coercion of third countries was accepted by majority vote.
According to the law, the EU and its member countries will be protected by their own measures against the economic coercion and pressure of third countries.
The new mechanism will be used if a non-EU country tries to put pressure on the EU or a member state to make a particular choice by imposing or threatening to impose trade or investment measures.
Measures include restricting trade and limiting foreign direct investment.
Measures that could be implemented in retaliation for economic coercion would include various trade measures, such as restricting trade in goods and services, limiting foreign direct investment, imposing import or export licenses, and blocking access to public tenders.
Within the framework of this mechanism, the EU Commission will conduct research on economic coercion and present its findings to member states.
Member states will implement the mechanism by majority vote and authorize the commission to take appropriate measures.
After this stage, the mechanism will come into force by being published in the EU Official Journal, following the official approval of EU member states.
It is envisaged that the mechanism in question can be used against countries that are alleged to impose economic impositions, such as China.