Metro Lex News

U.S. Congressman Andy Barr (R-KY-06) and Senator Bill Hagerty (R-TN) have led a bicameral effort urging Treasury Secretary Janet Yellen and senior Biden-Harris Administration officials to address concerns about the European Union's Corporate Sustainability Due Diligence Directive (CSDDD). The letter, signed by multiple senators and representatives, calls for immediate action to protect American economic interests from what they describe as regulatory overreach by the EU.

In May, the EU adopted the CSDDD, which mandates that businesses adhere to social and climate policies under international law. This directive affects U.S. businesses by requiring compliance with European regulations or facing severe penalties. The implementation of CSDDD has raised issues related to extraterritorial regulatory overreach, impacts on supply chains, litigation risks, and stringent climate transition requirements.

"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," stated Barr and Hagerty in their letter. "We are deeply concerned that the [Biden-Harris] Administration is surrendering its regulatory responsibilities to European officials."

The members of Congress emphasized that "any policies impacting U.S. businesses should be debated and determined by the elected representatives of the American people, not overseas bureaucrats advancing their own agendas."

The letter urges Secretary Yellen and other administration officials to engage with European counterparts to delay or modify CSDDD's implementation. To date, there is little evidence suggesting an effective strategy from the administration regarding this issue.

Senators who co-signed include Mike Crapo (R-ID), Lindsey Graham (R-SC), John Thune (R-SD), John Barrasso (R-WY), Roger Wicker (R-MS), Jim Risch (R-ID), Jerry Moran (R-KS), John Boozman (R-AR), Mike Lee (R-UT), Tim Scott (R-SC), Ted Cruz (R-TX), Shelley Moore Capito (R-WV), Tom Cotton (R-AR), Steve Daines (R-MT), Mike Rounds (R-SD), Thom Tillis (R-NC), Dan Sullivan (R-AK), Kevin Cramer (R-ND), Mike Braun (R-IN), Cynthia Lummis(R-WY ), Tommy Tuberville(R-AL ), Ted Budd(R-NC ), Eric Schmitt(R-MO ), Katie Britt(R-AL )and Pete Ricketts(R-NE ). Representatives who co-signed include Jodey Arrington( R-TX -19 ), Dan Bishop( R-NC -08 ), Buddy Carter( R-GA -01 ), James Comer( R-KY -01 ), Dan Crenshaw( R-TX -02 ), John Curtis( R-UT -03 ), Byron Donalds( R-FL -19 ), Jeff Duncan( R-SC -03 ), Tom Emmer( R-MN -06 )and Drew Ferguson( R-GA 03 ).

"Secretary Yellen,

The European Union has long been known for implementing vague, broadly scoped, and complex regulations that hinder business growth and raise consumer costs," wrote Barr and Hagerty. They highlighted that more than 60% of EU companies consider regulation a barrier to investment.

Now through CSDDD adopted on May 24th ,2024 ,the EU imposes significant legal obligations on US businesses .It converts UN guiding principles on business & human rights along with several other conventions into binding laws applicable even if USA hasn’t ratified many underlying international conventions .

They expressed concern about lackluster response so far despite testimony acknowledging issue before House Financial Services Committee earlier .No senior official voiced opposition against this potentially harmful directive affecting US interests

Finally urged active public engagement with Brussels counterparts delaying implementing/repealing substantially modifying directive preserving US sovereignty sustaining America’s economic competitiveness

Sincerely,

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