Germany and France agree on last-resort tool against trade threats - Financial Times

France and Germany have jointly put forward a proposal for a new legal instrument that would enable the European Union to act swiftly in the event of trade threats such as dumping or other measures that could cause economic damage to the bloc.

The instrument is intended to function as a rapid‑response mechanism, allowing the EU to address trade wars or unfair trade practices that may arise and threaten the internal market. It would serve as a last‑resort tool, to be employed when existing trade defence measures prove insufficient.

French President Emmanuel Macron and German Chancellor Friedrich Merz emphasized that the proposal is not a reaction to the actions of any particular country. Both leaders framed the initiative as a preventive step to safeguard the EU’s economic interests and to strengthen the Union’s capacity to manage future trade disputes.

The timing of the proposal coincides with the upcoming visit of European Commission President Ursula von der Leyen to China, where she is expected to discuss trade relations and address concerns about alleged trade imbalances and market access restrictions.

If adopted, the new tool would be incorporated into the EU’s existing trade‑defence framework and would require approval from member states. It is designed to complement, rather than replace, current mechanisms, providing the Union with an additional option to protect its economic interests in the face of emerging trade challenges.