Craig Goldman, Jodey Arrington Introduce Stop EU Overreach Act Targeting EU Regulations

Texas Congressmen Craig Goldman (R) and Jodey Arrington (R), joined by Rep. Greg Steube (R-FL), have introduced the Stop EU Overreach Act, legislation that would require a federal investigation into European Union environmental regulations they argue impose costly compliance burdens on American businesses.

Targeting EU sustainability rules

According to the lawmakers, the bill would direct the U.S. Trade Representative (USTR) to investigate whether the EU's regulatory framework unfairly burdens American businesses operating outside Europe.

The sponsors argue the regulations could impose more than $1 trillion in initial compliance costs on U.S. companies.

The legislation would require the USTR to launch a Section 301 investigation under the Trade Act of 1974 into several EU environmental policies, including:

• Corporate Sustainability Due Diligence Directive (CS3D).
• Corporate Sustainability Reporting Directive (CSRD).
• EU Deforestation Regulation (EUDR).
• Carbon Border Adjustment Mechanism (CBAM).

The investigation would determine whether these measures constitute unreasonable or discriminatory trade practices affecting U.S. commerce.

What Lawmakers are saying

Goldman said the legislation is intended to protect U.S. businesses from foreign regulations.

Rep. Craig Goldman: "This important legislation will protect American businesses from the EU's woke regulations and extreme green energy mandates."

Steube said American companies should not be subject to regulations established by foreign governments.

Rep. Greg Steube: "The EU’s sustainability mandates are a backdoor tax on our farmers, manufacturers, and small businesses that never voted for a single one of these rules."

What the bill would do

The Stop EU Overreach Act would:

• Direct the USTR to begin a Section 301 investigation.
• Examine whether EU sustainability regulations unfairly burden U.S. commerce.
• Require the USTR to recommend appropriate trade remedies if violations are found.
• Require findings to be reported to relevant House and Senate committees.

Support for the legislation

In addition to Goldman, Arrington, and Steube, the legislation is supported by:

• Rep. Gus Bilirakis (R-FL)
• Rep. August Pfluger (R-TX)
• Rep. Randy Weber (R-TX)
• Rep. Buddy Carter (R-GA)
• Rep. Warren Davidson (R-OH)
• Rep. Pete Sessions (R-TX)

The bill is also backed by the Small Business & Entrepreneurship Council.