WASHINGTON, D.C. – Rep. French Hill (AR-02), Vice-Chairman of the House Financial Services Committee, alongside 27 members of the committee, led a letter to Treasury Secretary Janet Yellen expressing serious concerns about the European Union’s (EU) Corporate Sustainability Due Diligence Directive (CSDDD) and the Treasury Department’s failure to push back against their exterritorial impact on U.S. companies.
Rather than studying the potential economic impact or looking out for U.S. small businesses, Treasury has instead been cheerleading the EU as it forces U.S. companies to not only disclose and identify, but also mitigate adverse environmental and social impacts throughout their value chain and financing. Whether it is Solvency II, international insurance capital standards, MiFID, or Basel, the U.S. should always defend American interests from the extraterritorial reach of foreign regulators.
In their letter, lawmakers said: “We view the extraterritorial application of EU requirements on American businesses as a violation of international norms and an infringement on U.S. sovereignty. The Biden Administration and, by extension, the Treasury has a duty to protect and advocate for U.S. interests, both domestically and abroad.”
The lawmakers requested a response from the Treasury Department no later than June 30.
To read the full letter, please click HERE.