The EU is preparing a “bazooka” on the USA: The European Union plans to hit the Silicon Valley with retaliation, if Donald Trump imposes duties on the community according to its threat. The European Commission looks at the possibilities of using the so -called an instrument for preventing coercion (English in short ACI) in conversations with Washington, he reveals in an interview with the “Financial Times” of two officials familiar with the case. Thanks to this, the EU will be able to choose the American service industry, such as Big Tech. These are the heaviest works that the Union can bring without breaking international law. Officials say “all options are on the table”.
What is the EU “Bazooka”? ACI is a tool that was created during Trump’s first presidency, but it was also consistently used as a deterrent against China. The instrument enables the EU enforcement to impose restrictions on trade in services if it finds that customs are used by a given country as a tool for forcing political changes. Trump’s actions, which threatened to impose duties to force Denmark to give Greenland to the United States, and to force the EU to forgive the release of activities undertaken against American technology enterprises.
“Bazooka” allows it: The provisions on ACI baptized as “Bazooka” entered into force in 2023 and allowed the community to take a wide range of retaliation as withdrawal of intellectual property protection e.g. when downloading software or streaming. Thanks ACI The Union may also block direct foreign investment, introduce restrictions in access to the banking sector, insurance or other financial services.
The Union hesitates, although it announces a definite answer: One of the EU officials announced that although the EU efficiently imposes duties on goods, it can still have resistance before the introduction of restrictions in new areas, including services and in terms of intellectual property rights. EU trade ministers However, during the Tuesday meeting in Warsaw they had Most of them to be punished with punishment of the USA, If necessary. Maros Sefcovic, EU trade commissioner, said he wants to negotiate to avoid customs. He added, however: “If they hit us, we will react in a firm way.”
This is not the best time to conflict: Sefcovic also noted, however, that the Union has a large deficit in trade in American services, although at the same time it records a surplus in the sale of goods to the US. Some countries are afraid of trading wars from the USA Just when the European economy is so weak. That is why they want to deerate the conflict with Trump.
Such formalities must be completed by the EU: According to the law, each The retaliation must be proportionaland the Commission must provide evidence that the actions he responds to are devastating for the European industry. Starting “Bazooki” requires consent from 15 out of 27 member countries.
The EU must work faster: Negotiations can take several weeks. The last retaliation duties imposed on the EU in 2018 were implemented for 3 months. For comparison, Canada and Mexico have prepared their answer along the sections a few hours after applying 25 % duties on them. However, both countries had long weeks to prepare them, Donald Trump has long announced his actions. French trade minister Laurent Saint-Martin said “FT” that regardless of ACI, the Union must take faster retaliation: “Speed is crucial, it must be more efficient than recently. We must be more united and faster.”
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Source: Gazeta
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