The EU has agreed a new trade defence tool allowing it to retaliate against countries using punitive measures such as China’s block on Lithuanian imports over the Baltic state’s relationship with Taiwan.The anti-coercion instrument is the latest in a series of recent unilateral measures Brussels has adopted after declaring China a “systemic rival” in 2019.
“This is a vital tool to deter economic intimidation and defend EU interests in an increasingly volatile world,” said Valdis Dombrovskis, trade commissioner. The political agreement between the European parliament, member states and the European Commission was reached on Monday night and is still subject to a final approval in the coming weeks.
The bloc historically used the World Trade Organization to settle disputes but it is increasingly disillusioned as the Geneva-based body’s dispute process has been hamstrung by the US’s refusal to participate in it fully.