Commerce, EU launches tool to react to ‘blackmail’ from other countries

The European Commission proposes to create an instrument against the “economic coercion” exercised by third countries against the EU, in practice against the use of trade as a weapon of blackmail against the EU and its member countries, which what China is doing towards Lithuania these days, blocking exchanges with the Baltic state, very critical of Beijing for the repression of Uighurs in Xinjiang and pro-democracy demonstrations in Hong Kong. The tool, Executive Vice President Valdis Dombrovskis explains at a press conference in Brussels, “is horizontal”, that is, it is not aimed at a particular country, but could be used in cases similar to what it sees on two opposite fronts, precisely in these days. , Vilnius and Beijing. Today the EU does not have a similar weapon to respond to “coercive” actions by other countries: when it is operational, it will be able to defend itself better on the international level. The tool proposed by Ursula von der Leyen’s ‘geopolitical’ Commission aims primarily at “deterrence”, explained Dombrovskis, namely that its very existence should discourage other countries from using trade as a weapon to put political pressure on EU or its member states. The measures that the Commission can take to respond to “economic coercion” concern goods and services, but also intellectual property rights and foreign direct investment. Restrictions on access to the EU market will also be possible, such as public procurement, the capital market, the authorization of products under health and chemical regulations, as well as restrictions on access to EU research programs. . These are measures of last resort, which are meant to be targeted, proportionate and temporary, but which can be deployed quickly if needed. The Commission’s proposal will now have to be negotiated by the Council and Parliament, but Dombrovskis said that, given that the Chamber has been asking for a similar instrument for some time, he expects a fairly “rapid” approval process. Once adopted, the Commission will be able to use its traditional implementing and delegated powers, in the field of trade policy, which allow for sufficient flexibility and speed of action.