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EU plan to tackle ‘coercion’ against member states faces resistance

Brussels wants power to respond swiftly to external trade sanctions but some European countries prefer WTO rules

A proposed EU law that would allow swift retaliation against countries such as China and Russia over economic sanctions faces resistance from some member states.

The anti-coercion instrument would give the European Commission sweeping powers to impose tariffs and quotas, restrict intellectual property protection and even lock countries out of EU financial markets.

But some countries fear the regulation could breach World Trade Organization rules, increase protectionism and damage a fragile trading system.

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