On Friday, the US threatened the EU with measures if Brussels does not soften its environmental and human rights standards, which, according to Washington, unfairly burden American companies.
Washington acknowledged that Brussels had “made some positive reforms”, but noted that the EU had “failed to fully address the concerns of the US“. Therefore, the US “will take all necessary measures to eliminate the unjustified burden on American trade”.
US Ambassador to the EU Andrew Pazder increased pressure on Friday by writing on the social network X that “it is time for the EU to fulfill its promises”. He referred to commitments made last year under the Turnberry trade agreement, which were to ensure that American businesses would not face “unjustified restrictions” in transatlantic trade due to Brussels’ “green” standards.
Dispute over key EU directives
The dispute is centered around two main components of the EU’s corporate sustainability rules package. These are the Corporate Sustainability Due Diligence Directive, which requires large companies to eliminate harm to human rights and the environment associated with their activities and supply chains, and the Corporate Sustainability Reporting Directive, which obliges companies to disclose information related to sustainable development.
Brussels has reduced the scope of both laws in an effort to cut red tape, but has not met Washington’s demand to fully shield American companies from their impact.
Last week, Pazder also criticized the EU’s Carbon Border Adjustment Mechanism, calling it a “tariff” for American exporters. On Thursday, the White House accused the EU and more than 40 countries of facilitating the circumvention of US tariffs on Chinese goods by redirecting them through their markets.
The European Commission did not provide an immediate comment on POLITICO’s request. Coen Verhelst contributed to the preparation of the material.
