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The European Commission on Thursday rejected the US’ demands regarding its environmental regulations, which Washington considers too restrictive for its companies.
“Our laws, our European regulatory authority, is not up for discussion,” Commission deputy spokesperson Olof Gill said, making it clear the EU would not roll back on its power to adopt legislation.
This latest effort to push back against US demands comes as an EU official confirmed to Euronews that the US administration sent a document to the Commission this week requesting that American companies be exempted from the EU legislation on corporate due diligence – in Brussels jargon: the CSDDD.
The landmark EU corporate supply-chain legislation, adopted last year, requires companies to check their supply chains for dodgy environmental and labour practices.
Washington’s offensive also came this week from the US Chamber of Commerce, the main US business lobby, in a document published online on Wednesday, calling on the EU to reverse the principle of extraterritoriality that places both European and foreign companies on equal footing under these regulatory requirements.
The “current design (of the directive) could complicate transatlantic and international trade talks by acting as a de facto non-tariff barrier, given that third-country exporters would face obligations they had no role in shaping,” the document says.
‘Turnberry agreement temporary stabilisation’
US pressure on EU legislation — whether on digital or climate issues — has been relentless since US President Donald Trump’s return to power, even as the EU and the US concluded a trade agreement in July meant to ease transatlantic tensions.
According to the joint statement published a few weeks after this “Turnberry agreement”, the EU commits to paying a 15% tariff on its exports to the United States. However, one provision also refers to the European legislation on corporate due diligence.
“The European Union commits to work to address US concerns regarding the imposition of CSDDD requirements on companies of non-EU countries with relevant high-quality regulations,” the joint statement reads.
“The Turnberry agreement was only a phase of temporary stabilisation,” Elvire Fabry, expert of the Jacques Delors Institute, told Euronews.
“It’s no surprise that Trump is coming back at a series of irritants. At least we now have a channel for dialogue, but Trump won’t hesitate to use coercion if necessary, and the Europeans will have to determine what their red line is.”
Pressed by journalists, the Commission also repeatedly stated on Thursday that it is focusing on implementing the agreement, leaving ambiguity about the future of this legislation, which is mentioned in the trade deal.
This week’s US demands put the EU under increased pressure as trade negotiations continue.
Both administrations have launched discussions on steel, which is still subject to a 50% US tariff, and the Commission also hopes to negotiate certain exemptions to the 15% US tariffs, particularly on wine and spirits, for which France, Spain and Italy are actively working to reduce US tariffs.
