The European Commission on Wednesday this week presented a package of measures aimed at strengthening its defenses in the commercial sphere in the face of commercial retaliations for political reasons and blackmail from third countries. Brussels will also be able to impose sanctions on foreign governments, companies and individuals who abuse trade and financial links with the EU.
The typical situation is that of Lithuania. Recently, China closed its market to goods from Vilnius after the EU country allowed a Taiwanese representative office to open in its territory.
Under the current rules, disputes of this kind are treated as foreign policy issues. This means that to apply counter-sanctions against China, the consent of all twenty-seven national governments would be required. Faced with the inability to find a common line in the face of such retaliation, the Commission has chosen to change its approach. With the regulation proposed yesterday, the EU will be able to react without having to wait for the unanimity of the member states using the "weapons" of trade policy. "Any countermeasures taken by the EU would be applied only as a last resort when there is no other way to address economic intimidation, which can take many forms," explained the Commission.
"At a time of rising geopolitical tensions, trade is increasingly being weaponised and the EU and its Member States becoming targets of economic intimidation. We need the proper tools to respond. With this proposal we are sending a clear message that the EU will stand firm in defending its interests. The main aim of the anti-coercion tool is to act as a deterrent. But we now also have more tools at our disposal when pushed to act. This instrument will allow us to respond to the geopolitical challenges of the coming decades, keeping Europe strong and agile," said executive vice-president and trade commissioner, Valdis Dombrovskis.
The proposal now needs to be discussed and approved by the European Parliament and the Council of the European Union. In the next two months, stakeholders and citizens may provide further feedback, on which the Commission will report to the Council and Parliament.