US Presses EU for Further Trade Concessions on Sustainability Laws
The United States is urging the European Union to make additional changes to its corporate sustainability laws, arguing that they could negatively affect U.S. businesses operating in Europe. In a letter posted by Andrew Puzder, the U.S. ambassador to the EU, it was stated that while some reforms were made in December 2025 under the Sustainability Omnibus agreement, these did not fully address American concerns regarding directives like the Corporate Sustainability Due Diligence Directive (CSDDD) and the Corporate Sustainability Reporting Directive (CSRD). Puzder emphasized that the EU must fulfill its commitments from a trade deal signed in August 2025. That agreement had promised to reduce administrative burdens on U.S.-based companies under these directives, ensuring they would not create undue restrictions on transatlantic trade. The letter highlights ongoing issues with the scope of the laws and their compliance obligations. The EU has already adjusted its sustainability reporting requirements in December 2025 by raising thresholds for compliance, which is expected to reduce the number of affected companies significantly. However, Puzder's concerns remain about how these directives apply broadly across borders and could place an unfair burden on U.S. businesses not primarily operating within the EU.
Topics: corporate due diligence CSDDD CSRD EU sustainability laws U.S.