The anti-coercion instrument is the first tool the EU has had to deal with countries that restrict trade to try to force a change in EU policies. The relevant legislation entered into force at the end of 2023.
The aim of the instrument, which has not yet been used, is to act as a deterrent, sending a message to international trading partners that the EU will not put up with economic coercion. It allows the EU to formally identify instances of economic coercion by a non-EU country and to attempt dialogue and negotiation.
Then, if standard diplomacy fails, as a last resort the EU can react with a broad range of countermeasures. Possible measures include imposing duties on goods, restricting services, withdrawing protection from intellectual property and foreign investment and removing the right to apply for government contracts. These measures can be applied swiftly, but they must be proportionate, targeted and can only apply for as long as the coercion continues.