The European Union is considering activating its “Anti-Coercion Instrument,” often referred to as a trade “bazooka,” in response to potential economic threats. This instrument allows the EU to impose a range of punitive measures against countries attempting to leverage trade for political gain.
EU Weighs Response to Potential Trade Threats
The potential trigger for this action stems from recent moves by Donald Trump, who is reportedly using tariffs and economic pressure to advance what some consider an “illegitimate territorial claim.” While calls for action are growing within the European Parliament, the ultimate decision rests with the European Commission.
Should the European Commission decide to activate the instrument, it would require the support of a qualified majority of EU member states. This could prove challenging, given existing divisions among European capitals regarding how assertive to be with Washington.
Valérie Hayer, leader of the Renew party, described Trump’s actions as “unacceptable” and called for a shift “from reliance to deterrence.” Hayer stated the EU should be prepared to deploy “targeted and proportionate countermeasures,” explicitly suggesting consideration of the Anti-Coercion Instrument.
Bernd Lange, a German MEP and chair of the European Parliament’s trade committee, echoed this sentiment, noting that the Anti-Coercive Measures Act was drafted with precisely such scenarios in mind. He urged the EU Commission to immediately begin proceedings and an investigation.
Kathleen Van Brempt, S&D vice president for trade, characterized Trump’s tactics as “outrageous” and warned that approving a trade deal under such pressure would be “downright foolish.”
A possible next step is for the European Commission to launch an investigation into the claims of economic coercion. If the investigation confirms these claims, the Commission could then propose activating the Anti-Coercion Instrument, initiating a process that requires the approval of a qualified majority of EU member states. Alternatively, the EU could pursue diplomatic solutions, seeking to de-escalate the situation through negotiation. It is also possible that no immediate action will be taken, particularly if Trump does not follow through on his threats.
Frequently Asked Questions
What is the EU’s Anti-Coercion Instrument?
The EU’s Anti-Coercion Instrument, or “trade bazooka,” is a mechanism that allows the EU to respond to attempts by external actors to use economic pressure to influence policy decisions.
Who would decide whether to activate the instrument?
The decision to activate the Anti-Coercion Instrument would be made by the European Commission, but it would require the backing of a qualified majority of EU countries.
What measures could the EU take if the instrument is activated?
The EU could impose restrictions on investments, limit access to public procurement schemes, and impose limits on intellectual property protections.
As the EU considers its response to potential trade threats, what level of risk is acceptable in defending its economic interests and political autonomy?
