EU establishes trade retaliation mechanism

The institutions of the European Union (EU) agreed to establish a mechanism to ensure commercial retaliation against third countries that exert economic pressure to change the policies of member states.

The European Council announced that a consensus was reached on the regulation, which was negotiated between member states and the European Parliament (EP) and included the establishment of a commercial retaliation mechanism called the “pressure prevention instrument” against pressures third-party economics. countries.

Consequently, the EU and its member states will be protected against economic pressures from third countries.

Foreign countries that implement or threaten to implement measures that affect the trade or investment of EU countries will be intervened.

WILL DETERMINE COMMERCIAL PRESSURE TO THIRD COUNTRIES

Measures that could be applied to third countries in retaliation for economic coercion would include various trade restrictions, such as increasing customs duties, imposing import or export licences, and limiting government services or procurement.

The mechanism will deter third countries from exerting trade pressure on the EU.

Member states will decide what behaviors constitute economic coercion. The European Commission will be responsible for the implementation of decisions on intervention measures.

Currently, the EU does not have a legal framework to intervene against economic coercion.

After this stage, the official approval of the EP and the member states is required for the mechanism to protect trade priorities to enter into force.

It is expected that the mechanism in question can be used against countries like China, which supposedly impose economic impositions. (AA)