European Union regulation | |
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Title | Regulation (EU) 2023/2675 of the European Parliament and of the Council of 22 November 2023 on the protection of the Union and its Member States from economic coercion by third countries |
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The Anti-Coercion Instrument (ACI), also called the trade bazooka, [1] is a regulation of the European Union proposed in December 2021, [2] adopted in November 2023, and that entered into force in December 2023. [3] [4] Relating to geoeconomics, and combining security policy and trade policy, it is a defense and deterrence tool designed to prevent economic coercion by creating economic penalties for whichever country is performing the coercion. [4] Some types of economic pressure it could defend against include boycotts and trade restrictions. [5] As of July 2025, it has not been used. [3] An early version contained a mechanism for reimbursement to European states that had been coerced, but this did not make it into the final instrument. [2]
This instrument solved the problem of needing unanimous consent of all EU member states to implement trade restrictions; under the ACI, the veto power is removed, [5] and implementing trade restrictions is now accomplished through two qualified majority votes. [4] Another motivation for creating the ACI was the United States' sanctions against companies that helped construct the Nord Stream 2 pipeline around 2019, [2] [6] and the implementation of steel and aluminum tariffs in 2018. [5] Coercion by China against countries such as Lithuania and Norway was also a motivator. [2] For example, in 2021 Lithuania permitted Taiwan to open the Taiwanese Representative Office in Lithuania, and China was displeased with this and responded with sanctions; this is a situation that the ACI could potentially be invoked for in the future. [5] Another potential situation influencing the creation of the ACI was Belarus' threat to shut down natural gas shipments to the European Union during the Belarus–European Union border crisis. [5]
The procedure is activated by the European Commission submitting a request to the Council of the European Union. [3] After a period of negotiation with the country performing the coercion, the European Council can decide to implement "response measures" such as tariffs, limiting access to programs and financial markets, and intellectual property rights restrictions. [3] [5] These restrictions can be applied to states, companies, or individuals. [5]