**Introduction** The European Union’s (EU) Anti-Coercion Instrument (ACI) is a legal framework that allows the EU to identify economic coercion by a non-EU country, seek to stop it through consultation, and, if that fails, impose proportionate countermeasures. It is meant to deter pressure on the EU or its member states where trade or investment restrictions are used to force a policy change[1][2]. **How the ACI works** **1.** **Identification and assessment** The process begins when the EU considers that a third country is applying or threatening measures that affect trade or investment in order to pressure the EU or a member state. The European Commission examines the case against criteria set out in the regulation, including the nature of the measure, the degree of interference with sovereign policy choices, and the scale of the economic harm. The Council then decides, by qualified majority, whether economic coercion exists[1][2]. **2.** **Consultation before retaliation** Once coercion is identified, the first step is not retaliation but an effort to stop the pressure. The EU can enter into consultations or negotiations with the third country, seek compensation, and work through international forums where appropriate. The design of the instrument puts de-escalation first, with response measures treated as a last resort if the coercion persists[1][2]. **3.** **Possible EU countermeasures** If consultations do not end the coercion, the EU may adopt response measures that are intended to be proportionate to the injury suffered. The regulation allows a broad menu of actions, including raising customs duties, restricting imports or exports, limiting access to public procurement, and imposing measures affecting services, foreign direct investment, or certain intellectual property-related commercial rights. The aim is to give the EU enough flexibility to match the response to the type of coercion used[2]. **4.** **Institutional design and deterrent effect** The ACI is built to let the EU act collectively rather than leaving individual member states to respond alone. The Commission leads the investigation and can propose measures, while member states decide through qualified majority voting, which reduces the chance that a single government blocks action. The instrument has applied since December 27, 2023, and is intended as a deterrent as much as an enforcement tool: the existence of a credible EU response is meant to discourage coercive behavior before it escalates[1][3][4]. **Conclusion** The ACI works through a sequence of assessment, formal determination, consultation, and, if needed, countermeasures. Its main purpose is to strengthen the EU’s ability to resist external economic pressure in a structured and collective way. In practice, it gives the EU a standing mechanism to defend policy autonomy when trade and investment are used as tools of geopolitical leverage.
