The Anti-Coercion Instrument aims to protect EU companies from coercive measures imposed by third countries. (Image source: Pixabay)

A new EU instrument is expected to be introduced this fall to better protect the EU and its member states from coercive economic measures taken by third countries.

The European Council and Parliament had agreed on the so-called Anti-Coercion Instrument (ACI) on June 6. The main objective of the instrument is deterrence. Thus, the introduction of the ACI alone should prevent economic coercion.

If an EU member state is nevertheless affected by coercive measures taken by a third country, the new instrument can be used to provide a structure to avert them. This can be done through dialogue with the third country but also through countermeasures such as restrictions on trade or the imposition of tariffs.

Detailed information on the Anti-Coercion Instrument can be found on the website of the EU Commission in a Q&A.

Source: DIHK