2 weeks ago
EU rejects US demands to soften sustainability rules
The United States and the European Union are having a disagreement about rules.
The US says some EU rules about protecting the environment and people's rights make it too hard for American companies to do business in Europe.
The US wants the EU to make these rules easier for companies.
The EU says no, its rules are important and it will decide its own rules.
The United States also thinks some Chinese goods are sneaking into the US through other countries to avoid paying taxes.
The US is worried the EU might be part of this problem.
The EU says it also wants to stop tax cheating and customs fraud.
The US says it might take more action if the EU does not change its rules.
Both sides are still talking to each other and calling the talks constructive.
But they still disagree on what should happen next.
US Ambassador to the EU Andrew Puzder called on Brussels to align two corporate sustainability laws with the US-EU trade agreement.
The European Commission said the EU's rules framework and regulatory autonomy are "not up for negotiation."
A US government document warned Washington could take further action over what it called unreasonable burdens on American businesses.
A White House report flagged the EU among trading partners posing "illegal transshipment" risks from China, also targeting Mexico, Canada and Japan.
EU spokesperson Arianna Podesta said Brussels shares the US objective of tackling customs fraud and is engaging with Washington on the report.
- Who
- The European Union and the United States, including US Ambassador to the EU Andrew Puzder, European Commission spokesperson Arianna Podesta, and President Donald Trump.
- What
- The EU rejected US demands to roll back corporate sustainability regulations and defended itself against US accusations of enabling Chinese tariff evasion through transshipment.
- Where
- Between Washington and Brussels, in the context of the US-EU trade relationship.
- When
- The EU pushback came on Friday, following Puzder's criticism of the EU's carbon border tax the previous day.
- Why
- The US argues the EU's environmental and supply-chain rules burden American businesses and that the EU enables Chinese goods to evade US tariffs, while the EU insists its regulatory autonomy is not open to negotiation.
EU defends regulatory autonomy
US demands regulatory compliance
Corporate sustainability rules
EU defends regulatory autonomy
The EU says its rules framework and regulatory autonomy are not up for negotiation, and the CSDDD and CSRD are needed to address human rights and environmental impacts.
US demands regulatory compliance
The US says the directives' extraterritorial reach and costly supply-chain obligations burden American businesses and harm their ability to compete in the EU market, and that EU concessions so far do not go far enough.
China tariff evasion and transshipment
EU defends regulatory autonomy
The EU says it shares the US objective of tackling customs fraud and notes the White House report found the EU transshipment risk was "embedded within broad legitimate trade flows."
US demands regulatory compliance
The US, via a White House report, flags the EU among trading partners presenting risks of "illegal transshipment" from China, vowing to use artificial intelligence to detect such practices.
Key facts
- Disputed regulations
- Corporate Sustainability Due Diligence Directive (CSDDD) and Corporate Sustainability Reporting Directive (CSRD)
- US official
- US Ambassador to the EU Andrew Puzder
- EU response
- EU Commission: rules framework and regulatory autonomy "not up for negotiation"
- US warning
- Washington could take further action over "unreasonable burdens" on American businesses
- Also criticized
- EU carbon border tax CBAM, called "a tariff in substance" by Puzder
- Transshipment report
- White House report flagged the EU, Mexico, Canada and Japan for "illegal transshipment" risk from China
- EU stance on customs fraud
- Shares the US objective of tackling customs fraud; risk "embedded within broad legitimate trade flows"
Quotes
Arianna Podesta
European Commission spokesperson
“"We have been very clear and consistent on the fact that neither our rules framework nor our regulatory autonomy are up for negotiation."”
firstpost.com
“"The EU shares the US objective of tackling customs fraud."”
firstpost.com
Andrew Puzder
U.S. Ambassador to the EU
“"a tariff in substance, no matter the 'climate policy' label"”
firstpost.com
Sources
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