BETA


Events

2022/10/19
   EP - Committee decision to enter into interinstitutional negotiations confirmed by plenary (Rule 71)
2022/10/17
   EP - Committee decision to enter into interinstitutional negotiations announced in plenary (Rule 71)
2022/10/13
   EP - Committee report tabled for plenary, 1st reading
Details

The Committee on International Trade adopted the report by Bernd LANGE (S&D, DE) on the proposal for a regulation of the European Parliament and of the Council on the protection of the Union and its Member States from economic coercion by third countries.

The committee responsible recommended that the European Parliament's position adopted at first reading under the ordinary legislative procedure should amend the proposal as follows:

Subject matter

Members proposed that the Regulation should lay down rules and procedures in order to ensure the effective protection of the interests of the Union and its Member States where a third country seeks, through any form of action, failure to act or threat thereof affecting trade or investment, to coerce the Union or a Member State into adopting or refraining from adopting a particular act, including a particular policy choice, legal act or a stance with regard to a policy choice. It should also provide a framework for the Union to respond in such situations with the objective of deterring , or obtaining the cessation of such actions and, where appropriate, repairing the injury caused , thereby permitting the Union to counteract such actions. Any action taken under this Regulation should be consistent with the Union’s obligations under international

law.

Scope

Members proposed that the Regulation should apply only in the event of economic coercion where a third country applies or threatens to apply measures affecting trade or investment.

In determining whether the relevant conditions are met, the Commission should take into account the following:

- the intensity, severity, frequency, duration, breadth and magnitude of the third country’s measure or failure to act or threat thereof as well as the pressure arising from it; the Commission should assess whether such measures are part of a broader pattern of behaviour;

- the extent to which the third-country measure or failure to act or threat thereof encroaches upon an area of the Union’s or Member States’ sovereignty;

- whether the third country is acting based on a concern that is recognised as legitimate by international law and conventions.

Examination of third-country measures

Members proposed that the Commission should carry out the examination based on substantiated information collected on its own initiative or received from any reliable source, notably economic operators or trade unions. The European Parliament and a Member State may also provide such substantiated information to the Commission. The Commission should ensure the protection of confidential information which may include concealing the identity of the supplier of the information. The Commission should set up publicly available secure tools with a view to facilitating the submission of relevant and substantiated information from external sources.

EU response measures

Where necessary, a swift and effective EU response will make this instrument credible: EU countermeasures should be proportionate and swift, when urgent, and should aim not only at the cessation of the coercion but, whenever possible, also at addressing the injury caused by coercion.

Members called for a commitment to a negotiated solution with third countries without unduly delaying the implementation of the instrument.

The Chief Trade Enforcement Officer

The Chief Trade Enforcement Officer (CTEO) should be responsible for the implementation of this Regulation and its coordination with other tools related to anti-coercion such as the Blocking Statute. For the purposes of this Regulation, the CTEO should:

- gather information and provide cost and data analyses with a view to determining the nature of economic coercion measures;

- act, in full compliance with the principle of confidentiality, as the main contact point for EU businesses and private sector stakeholders affected by economic coercion measures, including with regard to assistance to be provided in the context of ongoing economic coercion.

Reporting and Review

The Commission should:

- evaluate any EU response measure six months after its termination, taking into account stakeholder input, and information provided by the European Parliament and the Council, and any other relevant information;

- publish every year an evaluation report in which it examines the effectiveness and operation of the Union response measure, and draw possible conclusions for future measures;

- review, no later than three years after its entry into force of this Regulation and at the latest every four years thereafter, this Regulation and its implementation, in particular, in ensuring complementarity with the review of the Blocking Statute.

Lastly, the European Parliament , which exercises democratic scrutiny over this instrument, should be kept informed together with the Council at all relevant stages, from the initial examination to the ongoing monitoring of EU measures.

Documents
2022/10/10
   EP - Vote in committee, 1st reading
2022/10/10
   EP - Committee decision to open interinstitutional negotiations with report adopted in committee
2022/07/28
   EP - Committee opinion
Documents
2022/06/22
   EP - Committee opinion
Documents
2022/05/31
   EP - Amendments tabled in committee
Documents
2022/04/19
   EP - Committee draft report
Documents
2022/01/27
   EP - Committee referral announced in Parliament, 1st reading
2022/01/25
   EP - HAHN Svenja (Renew) appointed as rapporteur in IMCO
2022/01/25
   EP - GREGOROVÁ Markéta (Verts/ALE) appointed as rapporteur in AFET
2021/12/09
   EC - Document attached to the procedure
2021/12/09
   EC - Document attached to the procedure
2021/12/09
   EC - Document attached to the procedure
2021/12/09
   EP - LANGE Bernd (S&D) appointed as rapporteur in INTA
2021/12/08
   EC - Legislative proposal published
Details

PURPOSE: to present a new tool to counteract third countries’ economic coercion of the Union or a Member State.

PROPOSED ACT: Regulation of the European Parliament and of the Council.

ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council.

BACKGROUND: economic coercion refers to a situation where a third country is seeking to pressure the Union or a Member State into making a particular choice by applying, or threatening to apply, measures affecting trade or investment. Such practices unduly interfere with the legitimate policymaking space of the EU and its Member States and undermine the EU's open strategic autonomy.

Moreover, the modern interconnected world economy creates an increased risk of, and opportunity for, economic coercion, as it provides countries with enhanced, including hybrid, means to deploy such coercion. Currently, the EU does not have a legislative framework for acting against economic coercion. Therefore, it is essential that the Union possess an appropriate instrument to deter and counteract economic coercion by third countries to safeguard its rights and interests and those of its Member States.

CONTENT: with a view to protecting the interests of the EU and its Member States by enabling the Union to respond to economic coercion, the proposal lays down rules and to respond in such situations with the objective to deter, or have the third country desist from such actions, whilst permitting the Union, in the last resort, to counteract such actions.

With this new instrument, the EU will be able to respond to cases of economic coercion in a structured and uniform manner. A dedicated legislative framework ensures predictability and transparency; it underlines the EU's adherence to a rules-based approach, also internationally. The EU will engage directly with the country concerned to stop the economic intimidation. If the economic intimidation does not stop immediately, the new instrument will allow the EU to react swiftly and effectively, providing a tailor-made and proportional response for each situation from imposing tariffs and restricting imports from the country in question, to restrictions on services or investment or steps to limit the country's access to the EU's internal market.

Scope

The proposed Regulation applies where a third country:

- interferes in the legitimate sovereign choices of the Union or a Member State by seeking to prevent or obtain the cessation, modification or adoption of a particular act by the Union or a Member State

- by applying or threatening to apply measures affecting trade or investment.

In determining whether the above conditions are met, the following shall be taken into account:

- the intensity, severity, frequency, duration, breadth and magnitude of the third country’s measure and the pressure arising from it;

- whether the third country is engaging in a pattern of interference seeking to obtain from the Union or from Member States or other countries particular acts;

- the extent to which the third-country measure encroaches upon an area of the Union’s or Member States’ sovereignty;

- whether the third country is acting based on a legitimate concern that is internationally recognised;

- whether and in what manner the third country, before the imposition of its measures, has made serious attempts, in good faith, to settle the matter by way of international coordination or adjudication, either bilaterally or within an international forum.

Engagement with the third country concerned

The proposal suggests that the Commission should be open to engage on behalf of the Union with the third country concerned, to explore options with a view to obtaining the cessation of the economic coercion. Such options may include:

- direct negotiations;

- mediation, conciliation or good offices to assist the Union and the third country concerned in these efforts;

- submitting the matter to international adjudication.

The Commission should seek to obtain the cessation of the economic coercion by also raising the matter in any relevant international forum.

Lastly, the Annexes to the proposal include the possible Union response measures and the rules of origins and nationality for goods, services, investments and intellectual property rightholders.

Documents

  • Committee report tabled for plenary, 1st reading: A9-0246/2022
  • Committee opinion: PE729.854
  • Committee opinion: PE729.869
  • Amendments tabled in committee: PE732.655
  • Committee draft report: PE703.008
  • Document attached to the procedure: EUR-Lex
  • Document attached to the procedure: SEC(2021)0418
  • Document attached to the procedure: EUR-Lex
  • Document attached to the procedure: SWD(2021)0371
  • Document attached to the procedure: EUR-Lex
  • Document attached to the procedure: SWD(2021)0372
  • Legislative proposal published: COM(2021)0775
  • Legislative proposal published: EUR-Lex
  • Document attached to the procedure: EUR-Lex SEC(2021)0418
  • Document attached to the procedure: EUR-Lex SWD(2021)0371
  • Document attached to the procedure: EUR-Lex SWD(2021)0372
  • Committee draft report: PE703.008
  • Amendments tabled in committee: PE732.655
  • Committee opinion: PE729.869
  • Committee opinion: PE729.854
AmendmentsDossier
225 2021/0406(COD)
2022/04/29 IMCO 104 amendments...
source: 731.683
2022/06/15 IMCO 36 amendments...
source: 732.924
2022/06/21 AFET 85 amendments...
source: 734.163

History

(these mark the time of scraping, not the official date of the change)

docs/7
date
2022-10-13T00:00:00
docs
url: https://www.europarl.europa.eu/doceo/document/A-9-2022-0246_EN.html title: A9-0246/2022
type
Committee report tabled for plenary, 1st reading/single reading
body
EP
events/4/summary
  • The Committee on International Trade adopted the report by Bernd LANGE (S&D, DE) on the proposal for a regulation of the European Parliament and of the Council on the protection of the Union and its Member States from economic coercion by third countries.
  • The committee responsible recommended that the European Parliament's position adopted at first reading under the ordinary legislative procedure should amend the proposal as follows:
  • Subject matter
  • Members proposed that the Regulation should lay down rules and procedures in order to ensure the effective protection of the interests of the Union and its Member States where a third country seeks, through any form of action, failure to act or threat thereof affecting trade or investment, to coerce the Union or a Member State into adopting or refraining from adopting a particular act, including a particular policy choice, legal act or a stance with regard to a policy choice. It should also provide a framework for the Union to respond in such situations with the objective of deterring , or obtaining the cessation of such actions and, where appropriate, repairing the injury caused , thereby permitting the Union to counteract such actions. Any action taken under this Regulation should be consistent with the Union’s obligations under international
  • law.
  • Scope
  • Members proposed that the Regulation should apply only in the event of economic coercion where a third country applies or threatens to apply measures affecting trade or investment.
  • In determining whether the relevant conditions are met, the Commission should take into account the following:
  • - the intensity, severity, frequency, duration, breadth and magnitude of the third country’s measure or failure to act or threat thereof as well as the pressure arising from it; the Commission should assess whether such measures are part of a broader pattern of behaviour;
  • - the extent to which the third-country measure or failure to act or threat thereof encroaches upon an area of the Union’s or Member States’ sovereignty;
  • - whether the third country is acting based on a concern that is recognised as legitimate by international law and conventions.
  • Examination of third-country measures
  • Members proposed that the Commission should carry out the examination based on substantiated information collected on its own initiative or received from any reliable source, notably economic operators or trade unions. The European Parliament and a Member State may also provide such substantiated information to the Commission. The Commission should ensure the protection of confidential information which may include concealing the identity of the supplier of the information. The Commission should set up publicly available secure tools with a view to facilitating the submission of relevant and substantiated information from external sources.
  • EU response measures
  • Where necessary, a swift and effective EU response will make this instrument credible: EU countermeasures should be proportionate and swift, when urgent, and should aim not only at the cessation of the coercion but, whenever possible, also at addressing the injury caused by coercion.
  • Members called for a commitment to a negotiated solution with third countries without unduly delaying the implementation of the instrument.
  • The Chief Trade Enforcement Officer
  • The Chief Trade Enforcement Officer (CTEO) should be responsible for the implementation of this Regulation and its coordination with other tools related to anti-coercion such as the Blocking Statute. For the purposes of this Regulation, the CTEO should:
  • - gather information and provide cost and data analyses with a view to determining the nature of economic coercion measures;
  • - act, in full compliance with the principle of confidentiality, as the main contact point for EU businesses and private sector stakeholders affected by economic coercion measures, including with regard to assistance to be provided in the context of ongoing economic coercion.
  • Reporting and Review
  • The Commission should:
  • - evaluate any EU response measure six months after its termination, taking into account stakeholder input, and information provided by the European Parliament and the Council, and any other relevant information;
  • - publish every year an evaluation report in which it examines the effectiveness and operation of the Union response measure, and draw possible conclusions for future measures;
  • - review, no later than three years after its entry into force of this Regulation and at the latest every four years thereafter, this Regulation and its implementation, in particular, in ensuring complementarity with the review of the Blocking Statute.
  • Lastly, the European Parliament , which exercises democratic scrutiny over this instrument, should be kept informed together with the Council at all relevant stages, from the initial examination to the ongoing monitoring of EU measures.
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docs/0/summary
  • PURPOSE: to present a new tool to counteract third countries’ economic coercion of the Union or a Member State.
  • PROPOSED ACT: Regulation of the European Parliament and of the Council.
  • ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council.
  • BACKGROUND: economic coercion refers to a situation where a third country is seeking to pressure the Union or a Member State into making a particular choice by applying, or threatening to apply, measures affecting trade or investment. Such practices unduly interfere with the legitimate policymaking space of the EU and its Member States and undermine the EU's open strategic autonomy.
  • Moreover, the modern interconnected world economy creates an increased risk of, and opportunity for, economic coercion, as it provides countries with enhanced, including hybrid, means to deploy such coercion. Currently, the EU does not have a legislative framework for acting against economic coercion. Therefore, it is essential that the Union possess an appropriate instrument to deter and counteract economic coercion by third countries to safeguard its rights and interests and those of its Member States.
  • CONTENT: with a view to protecting the interests of the EU and its Member States by enabling the Union to respond to economic coercion, the proposal lays down rules and to respond in such situations with the objective to deter, or have the third country desist from such actions, whilst permitting the Union, in the last resort, to counteract such actions.
  • With this new instrument, the EU will be able to respond to cases of economic coercion in a structured and uniform manner. A dedicated legislative framework ensures predictability and transparency; it underlines the EU's adherence to a rules-based approach, also internationally. The EU will engage directly with the country concerned to stop the economic intimidation. If the economic intimidation does not stop immediately, the new instrument will allow the EU to react swiftly and effectively, providing a tailor-made and proportional response for each situation from imposing tariffs and restricting imports from the country in question, to restrictions on services or investment or steps to limit the country's access to the EU's internal market.
  • Scope
  • The proposed Regulation applies where a third country:
  • - interferes in the legitimate sovereign choices of the Union or a Member State by seeking to prevent or obtain the cessation, modification or adoption of a particular act by the Union or a Member State
  • - by applying or threatening to apply measures affecting trade or investment.
  • In determining whether the above conditions are met, the following shall be taken into account:
  • - the intensity, severity, frequency, duration, breadth and magnitude of the third country’s measure and the pressure arising from it;
  • - whether the third country is engaging in a pattern of interference seeking to obtain from the Union or from Member States or other countries particular acts;
  • - the extent to which the third-country measure encroaches upon an area of the Union’s or Member States’ sovereignty;
  • - whether the third country is acting based on a legitimate concern that is internationally recognised;
  • - whether and in what manner the third country, before the imposition of its measures, has made serious attempts, in good faith, to settle the matter by way of international coordination or adjudication, either bilaterally or within an international forum.
  • Engagement with the third country concerned
  • The proposal suggests that the Commission should be open to engage on behalf of the Union with the third country concerned, to explore options with a view to obtaining the cessation of the economic coercion. Such options may include:
  • - direct negotiations;
  • - mediation, conciliation or good offices to assist the Union and the third country concerned in these efforts;
  • - submitting the matter to international adjudication.
  • The Commission should seek to obtain the cessation of the economic coercion by also raising the matter in any relevant international forum.
  • Lastly, the Annexes to the proposal include the possible Union response measures and the rules of origins and nationality for goods, services, investments and intellectual property rightholders.
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