Proposal for a Regulation on the protection of the Union and its Member States from economic coercion by third countries

Author (Corporate)
Series Details COM (2021) 775
Publication Date 08/12/2021
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Summary:

Legislative initiative tabled by the European Commission on 8 December 2021, establishing an Anti-Coercion Instrument aimed at countering the use of economic coercion by third countries against Member States of the European Union (EU).

Further information:

Economic coercion refers to a situation where a third country is seeking to pressure the EU or a Member State into making a particular policy choice by applying, or threatening to apply, measures affecting trade or investment against the EU or a Member State. There has been an increasing and significant use of economic coercion by third countries, and the EU has lacked a legislative framework for acting against it.

This draft law aims to remedy that legislative gap. The need for such a framework was highlighted in the Letter of Intent submitting by the President of the European Commission in September 2020. The Commission's 2021 Work Programme identified this initiative as a key one. Moreover, a Joint Declaration issued by the main EU institutions in February 2021 recognised that actions by third countries that seek to coerce the EU or a Member State to take or withdraw particular policy measures were of concern.

The proposed Regulation was tabled by the European Commission on 8 December 2021, alongside an accompanying Communication providing its context. The plenary of the European Parliament endorsed a negotiating position on 19 October 2022. The Council of the European Union adopted its general approach on 16 November.

Source Link https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=COM:2021:775:FIN
Related Links
Commentary and Analysis
New Statesman: Comments, 18/11/2021: Economic arm-twisting is on the rise. Europe must learn how to resist it https://www.newstatesman.com/comment/2021/11/economic-arm-twisting-is-on-the-rise-europe-must-learn-how-to-resist-it
Holman Fenwick Willan (HFW): Briefing, December 2021: European Commission proposes a new anti-coercion Regulation to counter economic coercion by third countries https://www.hfw.com/European-Commission-proposes-a-new-anti-coercion-Regulation-to-counter-economic-coercion-by-third-countries
Euronews, 08/12/2021: Brussels is vowing to fight back against economic coercion. But how far will it go? https://www.euronews.com/2021/12/08/brussels-is-vowing-to-fight-back-against-economic-coercion-but-how-far-will-it-go
CEPS: Policy Insights, 16/12/2021: Lithuania, China and EU lawfare to counter economic coercion https://www.ceps.eu/ceps-publications/lithuania-china-and-eu-lawfare-to-counter-economic-coercion/
ECFR: Events, 17/12/2021: Europe’s answer to economic warfare: The EU’s anti-coercion instrument and building sovereignty in a networked world https://ecfr.eu/event/europes-answer-to-economic-warfare-the-eus-anti-coercion-instrument/
European Journal of International Law: EJIL Talk! Blog, 19/01/2022: The EU’s Anti-Coercion Instrument: A Big Stick for Big targets https://www.ejiltalk.org/the-eus-anti-coercion-instrument-a-big-stick-for-big-targets/
German Council on Foreign Relations (DGAP): Policy Brief No 7, March 2022: Designing a Geo-Economic Policy for Europe https://dgap.org/en/research/publications/designing-geo-economic-policy-europe
Center for Strategic & International Studies (CSIS): Critical Questions, 21/04/2022: What Are the Trade Contours of the European Union’s Anti-coercion Instrument? https://www.csis.org/analysis/what-are-trade-contours-european-unions-anti-coercion-instrument
EPRS: Briefing, May 2022: EU response to economic coercion by third countries - Initial Appraisal of a European Commission Impact Assessment https://www.europarl.europa.eu/thinktank/en/document/EPRS_BRI(2022)730326
Hong Kong Trade Development Council (HKTDC) Research: Regulatory Alert, 19/08/2022: EU Law Proposal on Anti-coercive Economic and Trade Measures Faces Obstacles on Path to Adoption https://research.hktdc.com/en/article/MTE0NTc2NDQzOQ
Renew Europe EP Group: Newsroom, 10/10/2022: Renew Europe leads the strengthening of EU trade policy with the establishment of a strong anti-coercion instrument https://www.reneweuropegroup.eu/news/2022-10-10/renew-europe-leads-the-strengthening-of-eu-trade-policy-with-the-establishment-of-a-strong-anti-coercion-instrument
Van Bael & Bellis (VBB): Insights & News, 12/10/2022: The EU Anti-coercion Instrument Proposal: Update on the Position of the European Parliament and the Council https://www.vbb.com/media/Insights_News/EU_ANTI_COERCION_INSTRUMENT_-highres.pdf
EPRS: Briefing, November 2022: Proposed anti-coercion instrument https://www.europarl.europa.eu/thinktank/en/document/EPRS_BRI(2022)729299

News
Politico, 06/12/2021: EU flexes geopolitical muscle with new trade weapon https://www.politico.eu/article/eus-newest-trade-tool-allows-brussels-to-hit-back-hard-against-economic-blackmail/
Reuters, 08/12/2021: EU seeks to deter economic coercion with new trade defence https://www.reuters.com/business/eu-seeks-deter-economic-coercion-with-new-trade-defence-2021-12-08/
EurActiv, 08/12/2021: With geopolitics in mind, EU Commission presents new tool to deter trade wars https://www.euractiv.com/section/economy-jobs/news/with-geopolitics-in-mind-eu-commission-presents-new-tool-to-deter-trade-wars/
EUObserver, 09/12/2021: EU plans new trade defence tool to deter economic coercion https://euobserver.com/world/153761
Deutsche Welle, 10/12/2021: EU devises new measures against 'economic coercion' https://p.dw.com/p/446ep
LRT News, 07/01/2022: France wants quick EU response to China’s coercion against Lithuania – media https://www.lrt.lt/en/news-in-english/19/1582942/france-wants-quick-eu-response-to-china-s-coercion-against-lithuania-media
Politico, 20/10/2022: EU countries seek to claw back power from Brussels on upcoming trade bazooka https://www.politico.eu/article/eu-countries-seek-to-claw-back-power-from-brussels-on-upcoming-trade-bazooka/
EurActiv, 16/11/2022: EU member states clip Commission wings in anti-coercion tool discussions https://www.euractiv.com/section/economy-jobs/news/eu-member-states-clip-commission-wings-in-anti-coercion-tool-discussions/

Official
EUR-LEX: SWD(2021)371: Staff Working Document accompanying the Proposal - Impact Assessment Report https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=SWD:2021:371:FIN
EUR-LEX: SWD(2021)372: Staff Working Document accompanying the Proposal - Executive Summary of the Impact Assessment Report https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=SWD:2021:372:FIN
European Parliament: Legislative Observatory: Procedure File for Proposal on Economic coercion by third countries (2021/0406(COD)) https://oeil.secure.europarl.europa.eu/oeil/popups/ficheprocedure.do?lang=en&reference=2021/0406(COD)
European Parliament: Legislative Train Schedule: Instrument to deter and counteract coercive actions by third countries https://www.europarl.europa.eu/legislative-train/theme-an-economy-that-works-for-people/file-instrument-to-deter-and-counteract-coercive-actions-by-third-countries
European Commission: Press Release, 08/12/2021: EU strengthens protection against economic coercion https://ec.europa.eu/commission/presscorner/detail/en/ip_21_6642
European Commission: Questions and Answers: Commission proposal for an Anti-Coercion Instrument (8 December 2021) https://ec.europa.eu/commission/presscorner/detail/en/qanda_21_6643
European Parliament: Press Release, 08/12/2021: Deterrent to defend EU interests: Trade Committee Chair on anti-coercion instrument https://www.europarl.europa.eu/news/en/press-room/20211208IPR19002/
S&D EP Group: Newsroom, 08/12/2021: S&Ds welcome EU’s new instrument to counter political weaponisation of trade https://www.socialistsanddemocrats.eu/newsroom/sds-welcome-eus-new-instrument-counter-political-weaponisation-trade
European Parliament: Press Release, 10/10/2022: MEPs back new trade instrument to protect the EU from economic blackmail https://www.europarl.europa.eu/news/en/press-room/20221010IPR42635/
Council of the European Union: Press Release, 16/11/2022: Trade: Council agrees negotiating position on economic anti-coercion rules https://www.consilium.europa.eu/en/press/press-releases/2022/11/16/trade-council-agrees-negotiating-position-on-economic-anti-coercion-rules/

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