Input Stories

The European Union’s Corporate Sustainability Due Diligence Directive is a costly regulation that would discourage trade and harm economic growth in both the U.S. and Europe, the NAM writes in a Washington Times (subscription) op-ed out this week.

What’s going on: Though it has been revised at the urging of American diplomats and business groups, the current iteration of the directive requiring that large companies prevent and mitigate environmental and social harms in their supply chains “still would impose substantial compliance costs, reporting obligations and legal liability on U.S. manufacturers,” NAM Managing Vice President of Policy Charles Crain writes. 

Why it’s problematic: The directive, which would apply to American firms doing more than 1.5 billion euros in annual sales to Europe, “could stretch deep into manufacturers’ U.S. supply chains, implicating small and privately held firms.”

• That would mean that thousands of businesses across the U.S. would “be subject to EU environmental and labor standards that have not been approved by Congress, vetted by U.S. administrative agencies or scrutinized by American courts.” 

The potential damage: American companies could face more than $1 trillion in new compliance costs due to the CSDDD and other EU laws, according to a Hudson Institute study that Crain cites. 

What should be done: “U.S. policymakers must continue to stand strong for U.S. companies and maintain firm pressure on European officials pursuing a costly regulation that would discourage trade and harm economic growth on both continents,” Crain concludes.
  NAM News

• The Daily Caller featured quotes from NAM Vice President of Domestic Policy Chris Phalen in a story on bipartisan permitting reform.
• Sen. Catherine Cortez Masto (D-NV) issued a press release announcing the bipartisan Electric Supply Chain Act with Sen. Jerry Moran (R-KS), featuring a support quote from NAM Vice President of Domestic Policy Chris Phalen.
• The House Ways and Means Committee issued a press release highlighting the NAM’s tax study and the stories of small manufacturers across the country.
• House Majority Whip Tom Emmer (R-MN) issued a press release announcing support for the SPEED Act, citing the NAM’s communication to the House. The press release that mentioned the NAM was covered in Politico Influence (subscription) and Axios.
• Reuters and Pensions & Investments covered the NAM’s statement on the proxy advisory firm executive order.
• The House Financial Services Committee issued a press release on the Investment Act, citing the NAM’s communication to the committee.