Mon. Sep 16th, 2024

Economic coercion: Statements at the EP plenary debate

Oct 3, 2023 , , ,

Strasbourg, 2 October 2023

Statement by Executive Vice-President Dombrovskis at the European Parliament plenary debate on economic coercion by third countries

Chair, Honourable Members: I would like to congratulate the European Parliament for its work on this important legislative file. In particular, I would like to thank INTA chair and rapporteur Mr Lange for ensuring its successful, smooth and swift conclusion.

The adoption of the anti-coercion instrument is an important step forward for the European Union.

It is a necessary tool which will help to protect the interests of the EU and its Member States from economic coercion. And as such it is an important instrument of the EU Economic Security Strategy.

The new instrument gives us the means to stand up for EU jobs and industry in a situation of coercion. In a wider sense, it represents the cornerstone of the EU contribution to addressing the issue of economic coercion at global level. The instrument is firmly grounded in the Union’s and international rules-based system and respects the rule of law.

From the side of the Commission, I confirm that we are mindful and respectful of all the commitments and legal obligations discussed and agreed. These include information for the Parliament, due process and reporting, the single contact point, the review obligations, and coherence with other instruments and acts.

I would mention also the two statements agreed to be published with the regulation. First, the joint statement of the Parliament, Council and Commission concerning the approach whereby this instrument does not represent a precedent as regards decision-making.

Second, the Commission statement on the use of the examination procedure for Union response measures. I can confirm the Commission’s commitment in this respect.

I am convinced that policymakers and stakeholders will benefit from the availability of this instrument. It is important to recall that it is first and foremost a deterrent. In a case of coercion against the EU or its Member States,will we look at applying countermeasureswhen dialogue and international cooperation do not result in removal of the coercion.

Finally, let me mention international cooperation. We have always said, and it was understood and accepted by both co-legislators, that this instrument will serve as a platform for international cooperation with others. It is an unfortunate fact that economic coercion exists and is of broader concern. I cannot emphasise how important it is that the EU leads on this to shape the international debate in line with our key interests of correct problem-description, effectiveness and international legality.

This is why we have been active in the G7, the Trade and Technology Council with the US, as well as other forums, in promoting the need to be able to respond to coercion.

I therefore, on behalf of the Commission, urge you to support this instrument when you vote tomorrow. I look forward to hearing your views.

Source – EU Commission

 

S&D: New EU tool to counter political weaponisation of trade: Final green light by the European Parliament

02/10/2023

Under S&D leadership, the European Parliament is set to give its final green light tomorrow to a new EU tool to fight economic threats and unfair trade restrictions by non-EU countries.

The EU will then be able to impose retaliatory measures on third countries that exert economic coercion on it or one of its member states. One example is the trade restrictions China imposed on Lithuania after it announced it was improving  cooperation with Taiwan in June 2021. The new tool could also have been considered when former President Trump threatened to retaliate against the EU digital taxes.

According to the regulation negotiated by the European Parliament’s rapporteur Bernd Lange, S&D MEP and chair of the Parliament’s trade committee,  the European Commission will have a maximum of 4 months to examine whether a measure taken by a third country is coercive or not. After which the EU Council will have to confirm it by a qualified majority within 8 to 10 weeks. Finally, the European Commission will have to decide on the nature of the response within 6 months. The aim of the anti-coercion tool is to act as a deterrent, allowing the EU to resolve trade conflicts through negotiation. However, as a last resort it could be used to launch countermeasures against a non-EU country, including a wide range of restrictions related to trade and investment.

Bernd Lange, S&D MEP, chair of the European Parliament’s trade committee, and rapporteur on the file, said:

“It is an important step for the EU’s economic security. We are equipping the EU with a new tool in our arsenal of measures intended to make the EU’s trade policy more autonomous and assertive against non-competitive practices. Obviously, the main aim of the anti-coercion tool is to act as a deterrent, but if necessary, the EU must be able to flex its muscles and takes a clear stance against bullying or the political weaponisation of trade. Taking countermeasures is a last resort, but we are ready to assert European sovereignty. We must protect the right of the Union to take democratic and sovereign policy choices without facing coercion.

“It is now time for this regulation to enter into force and the EU to continue taking the lead globally with like-minded partners. I am glad that the European Parliament will be involved in all the stages of the process, even being informed about the Commission’s assessment on coercion before the Council. We also succeeded in demanding clear timelines for the EU’s reaction, and a robust framework for obtaining reparation of injury. Parliament’s role has been defended and strengthened, and we look forward to swift implementation of the instrument.”

 

Renew Europe: The EU will finally be able to fend off blackmail from third countries

Date:

Renew Europe will tomorrow vote in favour of the anti-coercion instrument that will strengthen our trade toolbox. Initiated by the work of MEP Marie-Pierre Vedrenne on the EU Trade Enforcement Regulation, this instrument will enable the EU to repel blackmail by third countries seeking to interfere with its interests and those of its Member States, as China recently did with Lithuania. Without forgetting the need for dialogue with third countries, this tool is intended to act as a deterrent but also as an effective last resort.

Marie-Pierre Vedrenne (France, MoDem), Renew Europe shadow rapporteur on this file has declared:

“During this legislature, together with the Renew Europe Group, my focus has been on asserting the EU’s commercial power and open strategic autonomy. The EU must be able to defend its interests and to fend off blackmail from third countries with a deterrent and effective tool. While maintaining dialogue with our partners remains crucial, we are now equipped to prevent situations akin to Lithuania’s experience with China. The European Commission now bears the responsibility of implementing these tools and further advancing our legal arsenal.”

Background:

Pushed within the EU Trade Enforcement Regulation, the anti-coercion instrument is part of a solid and broader toolbox including other instruments such as the foreign subsidies instrument and the international procurement instrument. The possible countermeasures are listed in the regulation (Annex I) and include measures targeting customs duties, investment, services, procurement, export control goods, intellectual property, chemicals, or financial services from the coercing country.

The European Parliament will exercise democratic control over the application of this instrument.

The EU institutions reached an agreement in trilogue in March 2023, which was finalised in June 2023. Tomorrow’s plenary vote is the European Parliament’s last before entry into force, which should take place in the next few weeks, following final approval by the Council.

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