,i #aaith ,,congress #b;d ,session ,h4 ,r4 #ihib ,,in ,,the ,,house ,,of ,,representatives ,july #bc1 #bjbf,mr4 ,goldman of ,texas 7for himself1 ,mr4 ,arrington1 ,mr4 ,steube1 ,mr4 ,bilirakis1 ,mr4 ,weber of ,texas1 ,mr4 ,carter of ,georgia1 ,mr4 ,pfluger1 ,mr4 ,davidson1 and ,mr4 ,sessions7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to require the ,united ,states ,trade ,representative to initiate an investigation under section #cja of the ,trade ,act of #aigd with respect to the ,european ,union1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,stop ,,eu ,overreach ,act4 #b4 ,findings ,congress finds the following3 7#a7 ,the ,united ,states has a longstanding and compelling national interest in protecting ,united ,states persons from extraterritorial regulatory actions by foreign governments that burden ,united ,states commerce1 conflict with ,united ,states law1 and undermine the principles of fair1 reciprocal1 and rules-based international trade4 7#b7 ,the ,european ,union has adopted and is implementing a series of energy and environment-related directives and regulations with significant extraterritorial reach1 including the ,corporate ,sustainability ,due ,diligence ,directive 7,,cs#c;,d71 the ,corporate ,sustainability ,reporting ,directive 7,,csrd71 the ,deforestation ,regulation 7,,eudr71 the ,carbon ,border ,adjustment ,mechanism 7,,cbam71 and related or successor measures4 7#c7 ,these extraterritorial measures impose burdensome mandatory obligations on large companies operating in or deriving significant revenue from the ,european ,union4 ,such obligations include global supply chain and value chain mapping and due diligence1 detailed sustainability and emissions reporting1 deforestation-free traceability and geolocation requirements1 third-party verification and auditing1 public disclosures1 and substantial penalties with transposition and implementation deadlines already in effect or approaching in the near term4 7#d7 ,these extraterritorial measures apply to conduct1 operations1 subsidiaries1 affiliates1 and supply or value chains occurring wholly or substantially outside ,european ,union territory1 including the ,united ,states operations and supply chains of ,united ,states companies1 regardless of whether such conduct complies with ,united ,states law4 ,this constitutes an unreasonable and discriminatory trade practice burdening ,united ,states commerce within the meaning of section #cja7;b7 of the ,trade ,act of #aigd 7#ai ,u4,s4,c4 #bdaa7;b774 7#e7 ,the extraterritorial reach of these measures conflicts with core principles of ,united ,states law1 including limited liability doctrines1 ,state corporate fiduciary duties1 ,federal securities requirements1 and domestic energy and environmental policy frameworks4 7#f7 ,in the ,august #ba1 #bjbe1 ,joint ,statement on a ,framework on an ,agreement on ,reciprocal1 ,fair1 and ,balanced ,trade1 the ,european ,union expressly committed to ensure these measures do not pose undue restrictions on transatlantic trade and to address ,united ,states concerns regarding their extraterritorial application to companies from countries with high-quality domestic regulations4 ,the continued extraterritorial provisions of these measures are inconsistent with that commitment4 7#g7 ,notwithstanding the ,august #bjbe commitments and the ,european ,union's subsequent amendments1 these extraterritorial measures continue to impose burdensome obligations on ,united ,states persons4 ,the ,european ,union's own modifications have not resolved the core problems this ,act addresses4 7#h7 ,numerous ,united ,states trading partners1 including ,argentina1 ,australia1 ,brazil1 ,india1 ,south ,africa1 and the ,united ,kingdom1 have expressed shared concerns about the extraterritorial reach of these measures1 reflecting a multilateral1 rules-based objection rather than a bilateral dispute4 7#i7 ,section #cja of the ,trade ,act of #aigd 7#ai ,u4,s4,c4 #bdaa7 authorizes the ,united ,states ,trade ,representative to investigate and respond to such foreign government practices1 and the ,united ,states has a compelling national interest in deploying that authority to protect ,united ,states persons from extraterritorial regulation that conflicts with ,united ,states law and the principles of fair and reciprocal trade4 #c4 ,section #cja investigation 7a7 ,initiation of investigation 7#a7 ,in general ,not later than #cj days after the date of the enactment of this ,act1 the ,,ustr shall-- 7,a7 initiate an investigation under section #cjb7;b7 of the ,trade ,act of #aigd 7#ai ,u4,s4,c4 #bdab7;b77 to determine whether the covered extraterritorial measures imposed by the ,european ,union on ,united ,states persons constitute an unreasonable or discriminatory act1 policy1 or practice that burdens or restricts ,united ,states commerce under section #cja7;b7 of the ,trade ,act of #aigd 7#ai ,u4,s4,c4 #bdaa7;b772 and 7,b7 notify the appropriate congressional committees of such initiation4 7#b7 ,scope of investigation ,an investigation initiated under this subsection may include the following3 7,a7 ,the compliance costs imposed on ,united ,states persons1 including the supply chain due diligence1 emissions reporting and verification1 deforestation traceability1 sustainability disclosures1 and third-party auditing costs4 7,b7 ,the legal liability exposure of ,united ,states persons for the acts of their subsidiaries or suppliers operating outside of the ,european ,union4 7,c7 ,the competitive disadvantage suffered by ,united ,states persons relative to companies not subject to the covered extraterritorial measures4 7b7 ,petition or unilateral initiation of investigation 7#a7 ,in general ,if1 prior to the date of the enactment of this ,act1 the ,,ustr unilaterally initiates an investigation1 or is petitioned to initiate an investigation1 which is substantially similar to the investigation required under subsection 7a77#a71 such investigation may include the information described in subsection 7a77#b74 7#b7 ,notification to ,congress ,not later than #cj days after the date of the enactment of this ,act1 the ,,ustr shall notify the appropriate congressional committees of an investigation initiated under paragraph 7#a74 7c7 ,consultation requirement ,in conducting an investigation under this section1 the ,,ustr shall-- 7#a7 consult with ,united ,states persons who may be affected by the extraterritorial obligations imposed by the covered extraterritorial measures2 7#b7 seek information from relevant trade associations and labor representatives2 and 7#c7 coordinate with the ,secretary of ,commerce1 the ,secretary of ,state1 the ,secretary of ,energy1 the ,secretary of ,agriculture1 the ,secretary of ,defense1 the ,administrator of the ,environmental ,protection ,agency1 and the ,chair of the ,united ,states ,international ,trade ,commission4 7d7 ,determination deadline 7#a7 ,in general ,not later than #ab months after the date on which an investigation is initiated under subsection 7a71 the ,,ustr shall make a determination under section #cjd of the ,trade ,act of #aigd 7#ai ,u4,s4,c4 #bdad7 to determine if any action may be taken under section #cja of such ,act 7#ai ,u4,s4,c4 #bdaa74 7#b7 ,extension ,the ,,ustr may initiate one #fj-;day extension of the deadline described in paragraph 7#a7 if extraordinary circumstances warrant such an extension4 ,the ,,ustr shall notify the appropriate congressional committees in writing of the reasons for such extension4 7e7 ,determinations and ,action 7#a7 ,affirmative determination ,if the ,,ustr makes an affirmative determination under subsection 7d77#a71 the ,,ustr shall-- 7,a7 publish such determination in the ,federal ,register2 and 7,b7 consider appropriate action under section #cja7;c7 of the ,trade ,act of #aigd 7#ai ,u4,s4,c4 #bdaa7;c771 which may include addressing imports from member states of the ,european ,union1 the suspension of trade agreement benefits1 the imposition of duties commensurate with the burden imposed1 or any other action which would eliminate the burden on ,united ,states commerce that is attributable to the ,,cs#c;,d's extraterritorial provisions4 7#b7 ,negative determination ,if the ,,ustr makes a negative determination under subsection 7d7 and determines that no action described in paragraph 7#a77;,b7 is warranted1 the ,,ustr shall transmit to the appropriate congressional committees a report explaining such determination4 #d4 ,reporting requirements 7a7 ,initial report ,not later than #ij days after the date of the enactment of this ,act1 the ,,ustr shall submit to the appropriate congressional committees a report including-- 7#a7 the actions taken to comply with section #c7;a72 7#b7 any consultations requested or initiated with the ,european ,union2 and 7#c7 the ,,ustr's preliminary assessment of the nature and extent of the burden on ,united ,states commerce attributable to the covered extraterritorial measures4 7b7 ,determination report ,not later than #cj days after making a determination under section #c7;e71 the ,,ustr shall submit to the appropriate congressional committees a report including-- 7#a7 the ,,ustr's findings and determination2 7#b7 whether the determination is affirmative or negative and if the determination is affirmative1 a description of the remedial action taken or proposed2 and 7#c7 an assessment of the expected effect of such remedial action on ,united ,states commerce1 consumers1 and the ,united ,states-,european ,union trade relationship4 #e4 ,rule of construction ,nothing in this ,act shall be construed to-- 7#a7 limit the authority of the ,president or the ,,ustr to negotiate1 enter into1 or modify trade agreements with the ,european ,union2 7#b7 affect any other authority of the ,,ustr or the ,president under the ,trade ,act of #aigd 7#ai ,u4,s4,c4 #baja et seq47 or any other provision of law2 and 7#c7 constitute an affirmative finding that any specific act1 policy1 or practice of the ,european ,union violates any provision of ,federal law or any trade agreement to which the ,united ,states is a party4 #f4 ,sunset 7a7 ,partial sunset 7#a7 ,in general ,the requirements of this ,act1 with respect to an individual covered extraterritorial measure1 shall terminate on the date on which the ,,ustr certifies to the appropriate congressional committees that the ,european ,union has1 with respect to such individual extraterritorial measure-- 7,a7 repealed or formally amended the measure to eliminate the application of the extraterritorial obligations on ,united ,states persons2 or 7,b7 entered into a binding agreement with the ,united ,states ,government providing that ,united ,states persons shall not be subject to the extraterritorial obligations under such measure with respect to conduct1 operations1 or relationships occurring outside the territory of any member state of the ,european ,union4 7#b7 ,continuing application to other covered extraterritorial measures ,a termination under subsection 7a7 with respect to one individual covered extraterritorial measures shall not affect the application of this ,act to any other extraterritorial measure4 7b7 ,full sunset ,the requirements of this ,act shall terminate with respect to each covered extraterritorial measure on the date on which the ,,ustr certifies to the appropriate congressional committees that the requirements of subsection 7a77#a7 have been satisfied with respect to each covered extraterritorial measure4 7c7 ,certification inclusion ,a certification under this section shall include a determination that the repeal1 amendment1 or binding agreement fully and effectively eliminates the burden on ,united ,states commerce attributable to the relevant extraterritorial measure4 #g4 ,definitions ,in this ,act3 7#a7 ,appropriate congressional committees ,the term appropriate congressional committees means-- 7,a7 the ,committee on ,ways and ,means of the ,house of ,representatives2 and 7,b7 the ,committee on ,finance of the ,senate4 7#b7 ,covered extraterritorial measures ,the term covered extraterritorial measures means-- 7,a7 ,directive 7,,eu7 #bjbd_/agfj of the ,european ,parliament and of the ,council of ,june #ac1 #bjbd1 on corporate sustainability due diligence and amending ,directive 7,,eu7 #bjai_/aicg and ,regulation 7,,eu7 #bjbc_/bhei2 7,b7 ,directive 7,,eu7 #bjbb_/bdfd of the ,european ,parliament and of the ,council of ,december #ad1 #bjbb1 amending ,regulation 7,,eu7 ,no #ecg_/bjad1 ,directive #bjjd_/aji_/;,,ec1 ,directive #bjjf_/dc_/;,,ec and ,directive #bjac_/cd_/;,,eu1 as regards corporate sustainability reporting2 7,c7 ,regulation 7,,eu7 #bjbc_/aaae of the ,european ,parliament and of the ,council of ,may #ca1 #bjbc1 on the making available on the ,union market and the export from the ,union of certain commodities and products associated with deforestation and forest degradation and repealing ,regulation 7,,eu7 ,no #iie_/bjaj2 7,d7 ,regulation 7,,eu7 #bjbc_/ief of the ,european ,parliament and of the ,council of ,may #aj1 #bjbc1 establishing a carbon border adjustment mechanism 7,carbon ,border ,adjustment ,mechanism or ,,cbam72 or 7,e7 any successor directive1 regulation1 or implementing measure of the ,european ,union or any member state of the ,european ,union that imposes substantially similar extraterritorial due diligence1 reporting1 emissions accounting1 deforestation-related1 carbon pricing1 or sustainability obligations on ,united ,states persons as though under the authorities described in subparagraphs 7,a7 through 7,d74 7#c7 ,extraterritorial obligations ,the term extraterritorial obligations means1 with respect to the covered extraterritorial measures1 any requirement applicable to a ,united ,states person with respect to the conduct1 operations1 or relationships of such a person occurring outside the territory of the ,european ,union1 including obligations relating to-- 7,a7 the operations of subsidiaries or affiliates2 7,b7 supply chain or value chain partners2 or 7,c7 business practices1 labor standards1 or environmental measures1 emissions reporting1 or sustainability disclosures4 7#d7 ,united ,states person ,the term ,united ,states person means-- 7,a7 a ,united ,states citizen2 and 7,b7 an entity organized under the laws of the ,united ,states or any ,state1 including any subsidiary or affiliate of such entity4 7#e7 ,,ustr ,the term ,,ustr means the ,united ,states ,trade ,representative4