Washington D.C. – U.S. Senators Katie Britt (R-Ala.), Bill Hagerty (R-Tenn.), Congressman Andy Barr (R-Ky.), and several other lawmakers have sent a letter to Treasury Secretary Janet Yellen and senior officials in the Biden-Harris Administration, urging them to protect U.S. economic interests from what they describe as regulatory overreach by the European Union (EU). The letter raises concerns over the EU’s recently adopted Corporate Sustainability Due Diligence Directive (CSDDD), which mandates compliance with specific social and climate policies.
The CSDDD, enacted in May, requires businesses, including many U.S. companies, to adhere to European regulations or face penalties. The directive aims to enforce progressive climate and social responsibility measures as part of international law. However, critics of the policy, including the group of U.S. lawmakers, argue that the directive oversteps boundaries by imposing European rules on American businesses.
“The CSDDD’s extraterritorial scope amounts to a serious breach of U.S. sovereignty and a direct threat to the global competitiveness of American companies,” the lawmakers wrote. They expressed concerns that the Biden Administration has not taken sufficient action to counter the directive, which could impose significant burdens on U.S. businesses.
The letter urges Secretary Yellen and other officials to engage with European leaders to either delay the implementation of the CSDDD or push for its repeal or modification. The lawmakers argue that decisions impacting U.S. businesses should be made by elected U.S. officials rather than foreign regulators.
The letter also highlights concerns about the potential adverse effects on supply chains, litigation risks, and stringent climate transition requirements associated with the directive. The lawmakers believe that these elements of the CSDDD could harm U.S. industries and diminish the competitiveness of American companies in the global market.
The call to action was supported by numerous lawmakers, including Senators Mike Crapo (R-Idaho), Lindsey Graham (R-S.C.), and Representatives Dan Crenshaw (R-Texas) and Jodey Arrington (R-Texas), among others. The group seeks to prompt a stronger response from the administration to protect U.S. economic interests and challenge the EU’s regulatory measures.
To date, the Biden Administration has not publicly outlined a specific strategy for addressing the concerns raised in the letter.
