Green legislation should be reduced, US tells EU
The US is demanding that the EU water down and even remove certain elements of its green legislation, despite agreeing to a tariff pact earlier this year, The Financial Times has reported. According to a US government position paper seen by the newspaper, America is calling on Brussels to remove requirements for companies from outside the EU to provide “climate transition plans.”
The paper also requested changes to green legislation on supply chains to exclude American companies and others from “countries with high-quality corporate due diligence” as Washington continues to pressure nations to roll back some of their climate change policies.
In its bid to cut down on both forced labour and pollution, the EU introduced corporate due diligence rules in 2024, requiring that any companies operating in the bloc identify any possible social or environmental harms within their supply chains.
The American document seen by the FT calls this policy “serious and unwarranted regulatory over-reach” which “imposes significant economic and regulatory burdens” against American companies.
The FT reported that Washington has contacted the European Commission, delivering its demands, and that the US will not be offering any concessions in return for making the changes. This comes as the two prepare to negotiate the next stage of the summer’s trade deal which imposes a 15% tariff on the majority of goods that enter the US from the EU.
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