Anti-Coercion Instrument

The Anti-Coercion Instrument (ACI) is a European Union regulation designed to deter and respond to economic coercion exerted by non-EU countries against the Union or its member states. It was proposed by the European Commission in December 2021, politically agreed in March 2023, and entered into force on 27 December 2023 as Regulation (EU) 2023/2675.

The instrument defines economic coercion as a situation in which a third country applies or threatens trade or investment measures to pressure the EU or a member state into a particular policy choice, thereby interfering with their legitimate sovereign decisions. The political trigger for the file was widely understood to be China's informal trade restrictions against Lithuania in 2021, imposed after Vilnius allowed Taiwan to open a representative office under its own name. Earlier US extraterritorial sanctions and tariff threats also shaped the debate.

Procedurally, the Commission examines suspected coercion and proposes a determination to the Council, which decides by qualified majority. The EU's first preference is dialogue and negotiation; countermeasures are a last resort. Available response measures listed in Annex I are broad and include:

• Increased customs duties
• Import and export restrictions or licensing requirements
• Restrictions on public procurement participation
• Limits on services, foreign direct investment, and protection of intellectual property rights
• Restrictions on access to EU financial markets and chemicals or sanitary regimes

The ACI is part of a broader EU shift toward an "open strategic autonomy" trade toolkit, alongside the Foreign Subsidies Regulation, the International Procurement Instrument, and the Enforcement Regulation. Critics argue it risks escalating trade conflicts and blurring the line between unilateral retaliation and WTO-consistent action; supporters frame it as a credible deterrent that strengthens the EU's geoeconomic leverage. As of its entry into force, the Commission had not yet formally activated the instrument against any third country.