Studio Legale Padovan, as a member of the European Association of Trade + Investment Controls and Compliance Attorneys [AT+ICA], has participated in and given a significant contribution to the elaboration of a response to the European Commission’s Public Consultation on a new anti-coercion instrument.
Coercive measures can take different forms, including trade and investment restrictions and, as clarified by the provisional definition advanced by the European Commission, they ‘seek to coerce public authorities in the EU to take, not take, or withdraw, particular policy measures’. While some coercive measures can violate international law and the multilateral trading system (for example, through the imposition of illegal trade barriers and the violation of diplomatic rights), others are purely political and do not necessarily infringe international law (for example, boycotts and revocation of visas).
Coercion and the response thereto are a sensitive topic, as it involves the interests of different sectors and may lead to an escalation of tensions if not dealt with swiftly and sensibly. This topic has increasingly gained relevance, and can be illustrated by the developments related to the ‘5G wars’ between China and the United States. A sensitive issue is how to effectively respond to these questions and, at the same time, comply with international law and the multilateral trading system (WTO law and bilateral/regional trade agreements).
Against this backdrop, the aim of the Public Consultation was to obtain information and feedback from stakeholders and civil society on the coercive practices taken by third States against the EU, EU Member States and EU businesses, and how to respond to said measures. The consultation process could lead to the elaboration of a new regulation that would serve to deter and counteract coercive practices by non-EU countries. In its contribution, [AT+ICA] stressed the usefulness of a new instrument on the topic, and the need to take into account the interests of stakeholders while at the same time being compliant with the international legal system when taking countermeasures to coercive practices.
[AT+ICA] is a network of professionals with expertise in export controls, economic sanctions, investment screenings and other regulatory controls, of which Studio Legale Padovan is a proud founding member. [AT+ICA] members have vast experience on restrictive measures taken by third countries and which affect the interests of EU businesses and EU member States.