EU seeks to deter economic coercion with new trade defence

BRUSSELS, Dec 8 (Reuters) - The European Commission set out plans on Wednesday to retaliate against countries that put economic pressure on EU members to change their policies, while stressing the main purpose was deterrent.

The proposal is designed to counter an increased spillover of geopolitical tensions into trade. European Union member states have accused the administration of former U.S. President Donald Trump and China of weaponising trade.

"At a time of rising geopolitical tensions, trade is increasingly being weaponised and the EU and its member states becoming targets of economic intimidation. We need the proper tools to respond," European Commissioner for Trade Valdis Dombrovskis said in a statement.

"With this proposal we are sending a clear message that the EU will stand firm in defending its interests."

On hearing a complaint, the Commission would need to determine whether a third country's economic measure was designed to coerce the EU or one of its members to change policy. (Reporting by Philip Blenkinsop and John Chalmers)