What is the EU anti-coercion instrument that could be used against US?
James Cox
As the European Union scrambles to respond to the crisis ensuing over US president Donald Trump's threats over Greenland, the 'anti-coercion instrument' or 'bazooka' is back in focus.
So what is it?
The Anti-Coercion Instrument (ACI), also called the trade bazooka, is a regulation of the European Union proposed in December 2021,adopted in November 2023, and that entered into force on December 27th, 2023.
It aims to protect the EU and its member states from economic coercion by third countries and provides a framework for EU action, including examination, engagement, and the adoption of countermeasures.
Retaliatory tariffs against the US worth up to €93 billion ($108 billion) are also being considerwed, but the ACI is a viable alternative.
How has it come to this?
Mr Trump stunned Europe on Saturday as he threatened tariffs up to 25 per cent on EU members Denmark, Finland, France, Germany, the Netherlands, and Sweden – and non-members Britain and Norway - all Nato allies.
He said the tariffs would apply until the United States is allowed to purchase Greenland from Denmark.
French president Emmanuel Macron was one of the first leaders to propose utilising the ACI in response to Mr Trump's threats.
The leader of the liberal Renew group in the European Parliament, Valerie Hayer, also called for the measure to be introduced.
"The United States is making a miscalculation that is not only dangerous but could be painful," Ms Hayer said in a statement.
Fianna Fáil MEPs, and independents Michael McNamara, and Ciaran Mullooly, are part of the Renew group.
What does the Anti-Coercion Instrument do?
It allows the EU to take measures including import and export restrictions on goods and services in its single market of 450 million people.
If it was used, Brussels could also limit American companies' access to public procurement contracts in Europe.
If it is activated, it could still take months to take effect. Fifty-five per cent of member states would have to vote in favour of the ACI.
Would the ACI have an impact on Ireland?
The short answer is yes. The ACI could have a significant impact on Ireland's economy.
It could have a negative impact on Irish exports and the tech sector in particular. Ireland relies heavily on foreign direct investment, with a lot of that coming from US tech and medical companies, and those organisations would suffer loses due to EU restrictions from the ACI.
In a statement on Sunday, Green Party leader Roderic O'Gorman called on Taoiseach Micheál Martin to brief opposition leaders on the potential impact of the anti-coercion instrument.
Minister for Foreign Affairs Helen McEntee stressed it would be very much a "last resort".
Tánaiste and Minister for Finance Simon Harris will be part of a meeting of EU finance ministers discussing Mr Trump's tariff threats on Monday in Brussels.
