What is the EU's anti-coercion instrument, and how does it work?
Euronews.com • • general
Key Points:
- The EU's anti-coercion instrument (ACI), adopted in 2023, is designed to counter economic coercion by third countries, such as the US and China, by allowing the EU to impose retaliatory trade measures including tariffs, limiting market access, and restricting public procurement tenders.
- President Trump has threatened tariffs ranging from 10% to 25% on Denmark if it does not agree to sell Greenland, a move seen as coercive and potentially triggering the EU's anti-coercion tool.
- The ACI is considered a "trade bazooka" because it enables the EU to leverage its single market of 500 million consumers to retaliate against coercive trade practices, but its activation requires a formal assessment and qualified majority
