The Anti-coercion toolalso defined by Brussels as “commercial bazooka”, is the response the EU could use against Donald Trumpafter the US President threatened the eight European states that have sent military forces to Greenland – Denmark, Finland, France, Germany, the Netherlands, Sweden, Norway and the United Kingdom – of increase duties to imports of al. products 10% from February 1st and on 25% starting June 1, 2026.
The French president Macron therefore invoked and considered the hypothesis of using theAnti-Coercion Instrumenta trade countermeasure approved by the European Parliament a October 2023, which allows European countries to react in case of economic pressure or retaliation implemented by third countries with the aim of influencing political decisions or choices. According to the Financial Times the European countermeasures could cost the US up to 93 billion dollars.
What is the “bazooka” commercial against Trump and what it is for
Nicknamed “bazooka” in Brussels, the Anti-Coercion Instrument is one economic and commercial countermeasurecreated by the European Union and never used until nowas it was designed as a deterrent and last resort in extreme cases. In the event that a third country exerts economic and commercial pressure to influence decisions and political choices of the Union, the latter may – by voting by qualified majority of the member countries (minimum 15) – adopt some countermeasures commercial and economic to defend themselves.
However, the first channel to activate in the event of pressure or restrictive measures imposed by third countries is that of mediation and diplomacy. The Anti-Coercion Tool must in fact be used as a deterrent and implemented only if diplomatic channels have not had the desired effects.
Among the various measures provided for by the Anti-coercion Instrument we find:
- Restrict the access of companies or groups to European financial markets;
- Exclude them from public procurement;
- Revoke import licenses;
- Restrictions on intellectual property rights;
- Ban digital services such as software or platforms streaming.
The European Union may also decide to ask for a compensation in money for the damage caused by economic coercion.
Why the EU Anti-Coercion Instrument was born
The Anti-Coercion Instrument was approved in October 2023 following the trade restrictions that the China had imposed on the Lithuania in 2021, after the latter’s announcement that it wants strengthen and intensify trade with Taiwan. Lithuanian companies, in fact, encountered great difficulties in contract renewals with Chinese companies, blocks of goods at customs and other commercial pressures exerted by the Chinese counterpart. The European Parliament therefore decided to denounce this case and from that moment on a European-level discussion began on the need to counteract these cases with concrete measures.
How the European Anti-Coercion Instrument works and how it is activated
After having initiated the procedure provided for by the Anti-Coercion Instrument, the European Commission ha four months of time to start investigations to verify that coercion exists by a third country. During this period, any actor affected by the potential coercion may submit to the Commission all useful and necessary information for the request under consideration.
Subsequently, based on the results of the investigation, the Council has between eight and ten weeks to decide whether coercion exists or not, with a vote a qualified majority. If so, and if the Member States agree, the Commission has six months to formulate the adequate countermeasureregularly updating the European Parliament and Council. The Commission will also initiate consultations with the third country to seek a diplomatic way to resolve the coercion, such as arbitration, conciliation and mediation.
THE’Anti-coercion Instrument is in line with international law and doesn’t compromise the rules of theWorld Trade Organization (WTO) nor its dispute settlement system, which cannot be used for specific cases of economic coercion unilaterally, as the Anti-Coercion Instrument provides. The latter also provides a reactivity and gods shorter times to defend themselves from measures and retaliations implemented by a third country.
