Representative Greg Steube (R-FL) has introduced a bill combating European Union (EU) mandates, arguing that they impose unfair regulatory costs on American businesses.
The Context
In July 2024, the European Union announced the enforcement of the Corporate Sustainability Due Diligence Directive (CS3D), which requires large companies operating in Europe to "identify and address adverse human rights and environmental impacts of their actions inside and outside Europe."
Similarly, the Corporate Sustainability Reporting Directive (CSRD) also requires companies to "disclose their environmental and social impact," while the Deforestation Regulation (EUDR) seeks to raise consumption of "deforestation-free" products, and the Carbon Border Adjustment Mechanism (CBAM) charges extra for imported products based on greenhouse gas emissions.
According to Rep. Steube's press release, these measures could potentially cost American companies operating in Europe trillions just for initial compliance, and billions more in implicit, recurring annual costs.
This is comparable to what American businesses already pay in accordance with domestic environmental and financial regulations.
What the Bill Does
As a result, Rep. Steube's Stop EU Overreach Act would direct the U.S. Trade Representative (USTR) to launch a Section 301 investigation into these mandates and determine if they constitute unreasonable or discriminatory trade practices on U.S. commerce.
If these mandates are indeed considered unfair, the USTR must then consider appropriate Section 301 remedies and report to the House Ways and Means and Senate Finance Committees.
What Lawmakers are Saying
"American companies should answer to American law, not to bureaucrats in Brussels," the Florida congressman said in a statement. "The EU is trying to export its regulatory agenda onto our farmers, manufacturers, and small businesses through the back door, and it's going to cost them billions of dollars they don't have to spend. I'm leading this fight to put American businesses first."
Representative Craig Goldman (R-TX), the bill's primary cosponsor, further commented, "The EU's extreme, green energy mandates don't just threaten to impose over a trillion dollars in compliance costs on American businesses; they're also a clear challenge to America’s sovereignty. I'm incredibly appreciative of Congressman Steube's leadership on this issue and his support for the Stop EU Overreach Act. Together, we'll work to defend American businesses and workers from the EU's costly regulations."
