Brussels, 10 October 2022
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MEPs extend the scope of the coercion response to repair injury
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Trade Committee makes tasks binding and sets deadlines to ensure swift response
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EU countermeasures are a last resort
Trade Committee MEPs backed a new tool for the EU to respond to countries seeking to coerce it or member states.
The committee adopted its negotiating position on the proposed anti-coercion instrument with 34 votes for, zero against and six abstentions on Monday evening.
Uphold the Union interest
The new tool is designed to protect the EU’s strategic and economic interests. It will help the EU to retaliate in case it or a member state experiences economic blackmail by a non-EU country to a particular policy choice or stance, such as an EP resolution. MEPs agreed that the primary goal of the new instrument should be to dissuade non-EU countries from attempting coercion or to get them to halt an attempt at coercion, and avoid escalating the conflict.
Possible EU responses as part of these new tools could include, for example, a suspension of tariff concessions or of certain international obligations the EU has to the non-EU country. MEPs stress that its use must be a last resort, once other avenues, including direct negotiations, mediation and international adjudication, have been exhausted. EU measures must also be commensurate to the negative impact on the EU or the member state concerned, and the rules-based multilateral trading system, with the World Trade Organisation at its core, must be preserved, MEPs insist.
Repair the injury
In their vote, MEPs extended the scope of the proposed legislation to include measures to “where appropriate, repair the injury”.
Binding tasks, deadlines
Trade MEPs strengthened the binding nature of the procedure. They also introduced deadlines for deciding on whether an instance of coercion has been identified and for the adoption of a response, to make sure the procedure is nimble enough to avoid administrative delays.
Compatibility with the reformed blocking statute
The Trade Committee also proposes a review in three years to check the new measure’s compatibility with the EU’s blocking statute which is currently under review and which protects the EU against the extraterritorial effects of third country law.
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“Today’s vote brings us one step closer to ensure that decisions in Europe will not be influenced by third countries trying to force their will on us. Unlike, for example, the US government’s section 301, the anti-coercion instrument is a defensive, reactive instrument, and a measure of last resort – we are underlining this important aspect in our position. We also think the EP and member states should play a more substantial role in determining the EU’s response to coercion, so the EU speaks with one voice. I am looking forward to making substantial progress towards a compromise about the final act under the Czech presidency this year,” says Rapporteur Bernd Lange (S&D, DE), the Chair of the Trade Committee.
Next steps
The draft report will serve as the mandate for negotiations with the member states, if there are no objections to it at the plenary session of 17-20 October. Talks can start as soon as Council adopts its position.
Background
The Commission published its proposal about the anti-coercion instrument on 8 December 2021, upon the request of the Parliament and the Council. The new deterrent will fill a gap in the EU toolkit against countries trying to restrict trade or investment to force a change in various EU policies.
Parliament denounced in several resolutions the People’s Republic of China’s economic coercion of Lithuania in response to a Lithuanian policy decision, among others, in January, February and September 2022.
Further information
EVP/CDU zum Instrument zur Bekämpfung von Wirtschafts-Zwangsmaßnahmen
Der Ausschuss für Internationalen Handel stimmt heute Nachmittag über ein Instrument zur Bekämpfung von Zwangsmaßnahmen ab. Dazu erklärt Daniel Caspary (CDU), Vorsitzender der CDU/CSU-Gruppe und Mitglied im zuständigen Ausschuss:
„Wenn Drittstaaten versuchen durch gezielte Handelsrestriktionen Einfluss auf politische Entscheidungen von Mitgliedstaaten zu nehmen, darf die EU nicht am kürzeren Hebel sitzen. Das Instrument zur Bekämpfung von Zwangsmaßnahmen sorgt dafür, dass Europa auf Augenhöhe bleibt.
Drittstaaten, die Handel als politische Waffe einsetzen müssen künftig mit Gegenmaßnahmen rechnen. Auf Handelsblockaden wie China sie wegen der Eröffnung der Vertretung Taiwans gegen Litauen verhängt hat, kann die EU in Zukunft robust reagieren und Gegenmaßnahmen verhängen. In dem immer rauer werdenden handelspolitischen Umfeld ist dies nach den Erfolgen der vergangenen Monate, wie der Verabschiedung des Instruments gegen marktverzerrende drittstaatliche Subventionen, ein weiterer konsequenter Schritt zur Stärkung unserer gemeinsamen Interessen.
Wichtig ist nun, dass nach der heutigen Ausschussabstimmung zügig das Trilogmandat durch das Plenum erteilt wird.”
Source – EVP/CDU (via email)
Europa-SPD zu Maßnahmen zur handelspolitischen Verteidigung ab: “Lücke im Instrumentarium schließen”
10. Oktober 2022
VON BERND LANGE
Der Handelsausschuss stimmt heute über eine wegweisende Neuerung für handelspolitische Maßnahmen der EU ab. Die EU-Kommission hatte Ende 2021 ein neues Gesetz vorgestellt, das die EU in die Lage versetzen soll, sich entschieden gegen Drittstaaten zu Wehr zu setzen, die die EU oder ihre Mitgliedstaaten zu politischen Entscheidungen zwingen wollen.
Bernd Lange, Vorsitzender des Ausschusses für internationalen Handel und Berichterstatter des Europäischen Parlaments für das sogenannte Anti Coercion Instrument:
“Die EU muss sich unangenehmen geopolitischen Realitäten stellen. Wir haben eine Lücke in unserem Instrumentarium. Wir sind angreifbar und es gibt Staaten, die diese Verwundbarkeit mit angedrohten Zwangsmaßnahmen ausnutzen wollen. Die jetzige Abstimmung ist ein wichtiger Schritt auf dem Weg zu einem Instrument, das sicherstellt, dass Drittstaaten Europa ihren Willen nicht aufzwingen können. Es geht im Kern darum, souveräne Entscheidungen zu garantieren.
Anders als beispielsweise der amerikanische Ansatz ist unser Instrument ein defensives, reaktives, eine Maßnahme der letzten Instanz – diesen wichtigen Aspekt unterstreichen wir in unserer Position. Wir stärken auch die Rolle des Europäischen Parlaments und der Mitgliedstaaten, um sicherzustellen, dass Reaktionen gemeinsam entwickelt werden und die Union mit einer Stimme spricht, wenn es darum geht, Zwangsmaßnahmen zu begegnen.”
Das Instrument zur Bekämpfung von wirtschaftlichen Zwangsmaßnahmen reiht sich ein in die Debatte um eine strategische Autonomie der EU. Es geht um ein stärkeres und durchsetzungsfähigeres Auftreten der Union als globaler Akteur. Der Start der Verhandlungen über das Instrument wird am Montag, 17. Oktober, im Plenum in Straßburg verkündet und damit das Trilog-Mandat des Europäischen Parlaments erteilt.
Source – S&D/SPD (via email)
Renew Europe leads the strengthening of EU trade policy with the establishment of a strong anti-coercion instrument
OCTOBER 10, 2022
Asserting the trade power of the EU has always been a priority for Renew Europe. The adoption, in the Committee on International trade, of the European Parliament’s position for the negotiations with the Council on the anti-coercion instrument (ACI), is a success for Renew Europe as well as recognition of our work to complete the EU trade toolbox. Indeed, the creation of the anti-coercion instrument was initiated by Marie-Pierre Vedrenne, Renew Europe’s rapporteur on the EU Trade Enforcement Regulation.
Our group is therefore delighted to witness the progress on this important file. Thanks to the anti-coercion instrument, the EU will have all the tools in hand to respond and counteract economic coercion measures from third countries seeking to interfere with the EU and Member States’ interests. If all attempts at dialogue with a third country applying coercive measures are unsuccessful, the EU will be able to counteract them.
The interinstutional negotiations must start as soon as possible. We are counting on the Council to live up the challenges and avoid any blockage and slowing down of the negotiations. The EU and its businesses need this instrument. Let’s continue to strengthen our trade power.
Marie-Pierre Vedrenne (L’Europe Ensemble, France), vice-chair of the Committee on International trade and shadow rapporteur on that file, on the behalf of Renew Europe, declared: “This vote is a great victory for the Parliament and the Renew Europe Group, and an important step for the future of EU’s trade policies. We are in need of such an instrument to have a strong toolbox, and convincing means to deter economic threats. We do not want a trade war. It will always be dialogue and negotiations first. But if it fails, we will be able to react and defend our interests with effective countermeasures.”
Samira Rafaela (D66, Netherlands), Renew Europe coordinator in the Committee on International trade, added: “Renew again is at the forefront of strengthening the EU’s trade toolbox. The adoption of Parliaments position on the anti-coercion instruments is an important next step for the EU’s ability to react to unjustified coercion of third countries. It is now time to enter into trilogue and work with the Council towards an effective instrument.”
Source – Renew Europe (via email)