MEPs debate new trade rules seek to deter foreign powers from bullying the EU or member states into policy changes using economic coercion and enable the EU to take countermeasures. The Anti-Coercion Instrument (ACI) seeks to protect the EU’s and member states’ sovereignty in a geopolitical environment where trade and investment are increasingly weaponised by foreign powers. Opening statements by Bernd LANGE (S&D, DE), Rapporteur and by Valdis DOMBROVSKIS, Executive Vice-President of the European Commission in charge of an Economy that works for People, and Commissioner for Trade, Markéta GREGOROVÁ (Greens/EFA, CZ), Rapporteur for AFET and by Svenja HAHN (Renew, DE), Rapporteur for IMCO.This transcription is a result of an automatic process. Please check against delivery.

statement

Strasbourg

debate

plenary session

LANGE, Bernd (S&D, DE)

DOMBROVSKIS, Valdis (EPP, LV, EC)

EU trade policy (T)

GREGOROVÁ, Markéta (Greens/EFA, CZ)

HAHN, Svenja (Renew, DE)

Economic coercion by third countries: opening statements by Valdis DOMBROVSKIS, Executive Vice-President of the European Commission, Markéta GREGOROVÁ (Greens/EFA, CZ), Bernd LANGE (S&D, DE), and by Svenja HAHN (Renew, DE), Rapporteurs

SOUNDBITE (German), Bernd LANGE (S&amp;D, DE), Rapporteur, Thank you very much. Madam President, Commissioner, dear colleagues. If you think of the situation in the world today, you have to note that what we thought earlier, we sort of thought about this. There's this a global trade connection. Reducing duties and tariffs and non-tariff duties were all playing with the same rules. But that story is over. It's clear the Washington consensus from 1994 is over.

SOUNDBITE (German), Bernd LANGE (S&D, DE), Rapporteur, Right now, we have this fragmented state of globalisation, very different interests, different countries. Who are not playing with fair rules. And so already in 2020, we asked the Commission and the Council to improve our toolbox. We need defensive measures. Measures that would ensure that we can defend our economic interests.

SOUNDBITE (German), Bernd LANGE (S&D, DE), Rapporteur, And I think one important measure is in order to defend ourselves, if there are investment measures or economic measures taken against the EU in order to force political changes, so a resolution in the European Parliament or legislation in the actual Member States.

SOUNDBITE (German), Bernd LANGE (S&D, DE), Rapporteur, And the Commission, in fact, created an anti-Coercion instrument. They have presented it and I do thank all the colleagues who worked with us on this in past months in order to improve this legislation, because in the proposal of the Commission, there were quite a lot of unclear fuzzy concepts and there was no real clear time frame for some of the procedures.

SOUNDBITE (German), Bernd LANGE (S&D, DE), Rapporteur, So, I think when it's ready to go, this is an instrument to have a rapid reaction against coercive measures, against pressure from other countries. And so we have to build to react rapidly. So, we have introduced a very clear timeline. We have clear definitions that have been introduced to say what is an anti-coercive instrument and what is a course of measure and how to react to it.

SOUNDBITE (German), Bernd LANGE (S&D, DE), Rapporteur, So, I think it's very good indeed that we have the possibility of countermeasures in a very broad sense, because, of course, there could be punitive tariffs. It could be withdrawing patent protection, removing goods from markets.

SOUNDBITE (German), Bernd LANGE (S&D, DE), Rapporteur, There's really a lot of potential and there could be a lot of things because there should be no countries should be able to speculate as to what measure they would expect as a countermeasure and then look at the Excel table and say, is it worth it or not? No. It's that's why it's important to have this large basket of measures available.

SOUNDBITE (German), Bernd LANGE (S&D, DE), Rapporteur, Because we see sometimes our American friends say, if you do this and this and introduce a digital tax, then we're going to have duties applied, or China, because Lithuania had upgraded the situation with the Taiwanese office. They imposed barriers on Lithuanian goods. So, we have to be able to address all these different situations. And so I think that's very good we can conclude this legislative procedure. Thank you very much.

SOUNDBITE (Latvian), Valdis DOMBROVSKIS, Executive Vice-President of the European Commission in charge of an Economy that works for People, and Commissioner for Trade, Madam Chair, Honourable Members. So, I would like to congratulate the European Parliament for its work on this important legislative file. In particular, I would like to thank the Chair and the rapporteur, Mr. LANGE, for ensuring its successful smooth and swift conclusion.

SOUNDBITE (Latvian), Valdis DOMBROVSKIS, Executive Vice-President of the European Commission in charge of an Economy that works for People, and Commissioner for Trade, The adoption of the anti-corruption instrument is an important step forward for the European Union. It is necessary to which will help to protect the interests of the EU and its Member States from Economic Coercion and as such is an important instrument of the EU economic security strategy.

SOUNDBITE (Latvian), Valdis DOMBROVSKIS, Executive Vice-President of the European Commission in charge of an Economy that works for People, and Commissioner for Trade, The new instruments gives us the means to stand up for EU jobs and industry in situations of coercion. In a wider sense, it represents a cornerstone of the EU contribution to addressing the issue of economic coercion at the global level.

SOUNDBITE (Latvian), Valdis DOMBROVSKIS, Executive Vice-President of the European Commission in charge of an Economy that works for People, and Commissioner for Trade, The instrument is firmly grounded in the Union's and international rules based system and respects the rule of law. From the side of the Commission, I confirm that they are mindful and respectful to all commitments and legal obligations discussed and agreed. This includes information for the Parliament, due process and reporting as a single contact point, as review obligations and coherence with other instruments and acts.

SOUNDBITE (Latvian), Valdis DOMBROVSKIS, Executive Vice-President of the European Commission in charge of an Economy that works for People, and Commissioner for Trade, I would mention also the two statements agreed to be published within regulation. First, the Joint Statement of the Parliament, Council and Commission, concerning the approach whereby this instrument does not represent a person as regards decision making.

SOUNDBITE (Latvian), Valdis DOMBROVSKIS, Executive Vice-President of the European Commission in charge of an Economy that works for People, and Commissioner for Trade, The second is a Commission statement on the use of examination procedure for Union response measures. I can confirm that the Commission's commitment in this respect. I am convinced that policymakers and stakeholders will benefit from the availability of this instrument. It is important to recall that it is first and foremost a deterrent.

SOUNDBITE (Latvian), Valdis DOMBROVSKIS, Executive Vice-President of the European Commission in charge of an Economy that works for People, and Commissioner for Trade, In case of coercion against the EU and its Member States, we will look at applying countermeasures when dialogue and international cooperation do not result in removal of coercion.

SOUNDBITE (Latvian), Valdis DOMBROVSKIS, Executive Vice-President of the European Commission in charge of an Economy that works for People, and Commissioner for Trade, Finally, let me mention international cooperation. We have always said, and it is understood and accepted by most co-legislators, that this instrument will serve as a platform for international cooperation with others. It is unfortunate fact that Economic Coercion exists and is of broader concern.

SOUNDBITE (Latvian), Valdis DOMBROVSKIS, Executive Vice-President of the European Commission in charge of an Economy that works for People, and Commissioner for Trade, I cannot emphasise how important it is that the EU leads on this to shape the international debate in line with our key interests, so correct the problem description, effectiveness and international legality.

SOUNDBITE (Latvian), Valdis DOMBROVSKIS, Executive Vice-President of the European Commission in charge of an Economy that works for People, and Commissioner for Trade, This is why we have been active in the G7 and the Trade and Technology Council with us, as well as other forums in promoting two need the need to be able to respond to Economic Coercion. Therefore, on behalf of the Commission, I urge you to support this instrument when you vote tomorrow and I look forward for hearing your views. Thank you.

SOUNDBITE (English), Markéta GREGOROVÁ (Greens/EFA, CZ), Rapporteur, Thank you. Dear colleagues to Commissioner. Ever since the Commission has decided that Member States shall not be attacked through Economic Coercion by adversaries, we in the European Parliament have been trying to do everything to make our deterrence credible.

SOUNDBITE (English), Markéta GREGOROVÁ (Greens/EFA, CZ), Rapporteur, It has also been a direct response to Chinese threats and coercion to Lithuania, a Member State, when they dared to call their Taiwanese embassy. Yet when the negotiations reached reached in the trialogues, the Council representing the Member States, made it clear that they do not want the instruments at all.

SOUNDBITE (English), Markéta GREGOROVÁ (Greens/EFA, CZ), Rapporteur, So, what we are today celebrating is a watered down, gutted piece of legislation which was done by the Member States that wanted to protect the Member states from very real and very present coercion. It is a new legislation and thus it is a success because it presents some sort of new deterrence, deadlines for response and retaliatory countermeasures, and I appreciate it truly.

SOUNDBITE (English), Markéta GREGOROVÁ (Greens/EFA, CZ), Rapporteur, However, what I don't appreciate is the message that one of the three EU institutions is sending towards its citizens and two bills, as well as the two countries that they might prefer business as usual rather than protection of their values if they deem it more beneficial. I just warn you, dear Member States, after your values come your institutions and after that your source of power. Try to think ahead and protect it before it is too late. Thank you.

SOUNDBITE (German), Svenja HAHN (Renew, DE), Rapporteur, Dear colleagues, we know very well that the conflict of our times is autocracy versus democracy, we see this in foreign policy and digital policy, but more specifically in economic policy and trade policy. Countries like Russia and China are deliberately using our dependence upon them as a weapon. So, we need to trade with more partners so that we do not become independent on individual countries.

SOUNDBITE (English), Markéta GREGOROVÁ (Greens/EFA, CZ), Rapporteur, But we also need strong defensive measures. As a continent, we need to defend ourselves. When other countries try to exert pressure on us, blackmail us, our countries, or our companies or the EU as a whole. If countries no longer respect trade rules, when trade is no longer used as an instrument for cooperation, then we in the EU ought to be able to defend our economic interests with confidence and unambiguously.

SOUNDBITE (English), Markéta GREGOROVÁ (Greens/EFA, CZ), Rapporteur, So, I will vote in favour of the anti-corruption instrument. As a liberal, I will always fight to ensure that it's the strength of the law that wins and not the law of the strongest. If all autocracies are using trade as a weapon against democracies, we have to be able to stand together against this.

SOUNDBITE (English), Markéta GREGOROVÁ (Greens/EFA, CZ), Rapporteur, The basis for an alliance of democracy is, for me, the common front that the EU present. That is the way that we will be able to defend democracy, freedom and the rules based free trade trading system. Thank you.