Jefferson Reporter

U.S. Senators Katie Britt and Bill Hagerty, alongside Congressman Andy Barr and other colleagues, have expressed concerns regarding the European Union's Corporate Sustainability Due Diligence Directive (CSDDD). They sent a letter to Treasury Secretary Janet Yellen and senior officials in the Biden-Harris Administration urging them to protect U.S. economic interests against what they see as regulatory overreach from Europe.

The CSDDD, adopted by the EU in May, incorporates social and climate policies into international law. This directive mandates compliance from many U.S. businesses with European standards or face penalties. Concerns have been raised about its impact on supply chains, litigation risks, and 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," wrote the members of Congress. They further stated that "the [Biden-Harris] Administration is surrendering its regulatory responsibilities to European officials."

The letter also criticizes the EU for allegedly shifting the burden of its regulatory framework onto American businesses: "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."

Senators Britt and Hagerty are calling for Secretary Yellen and administration officials to engage with European counterparts to delay or modify CSDDD's implementation. They note there has been little evidence of an effective strategy from the administration on this matter.

Additional signatories include Senators Mike Crapo, Lindsey Graham, John Thune, John Barrasso, Roger Wicker, Jim Risch, Jerry Moran, John Boozman, Mike Lee, Tim Scott, Ted Cruz, Shelley Moore Capito, Tom Cotton, Steve Daines, Mike Rounds, Thom Tillis, Dan Sullivan., Kevin Cramer., Mike Braun., Cynthia Lummis., Tommy Tuberville., Ted Budd., Eric Schmitt., Pete Ricketts., along with Representatives Jodey Arrington., Dan Bishop., Buddy Carter., James Comer., Dan Crenshaw., John Curtis., Byron Donalds., Jeff Duncan., Tom Emmer., Drew Ferguson., Scott Fitzgerald., Chuck Fleischmann.. Full text of the letter can be found here.