U.S. Rep. Dan Meuser (R-PA) is commending the Financial Services Committee’s advancement of the Protecting U.S. Business Sovereignty Act, which offers overseas domestic companies regulatory protections.
The legislation directs the Securities and Exchange Commission (SEC) to conduct a study on the impact certain European Union mandates would have on American companies, consumers, investors and the economy.
“I appreciate the Financial Services Committee’s support for this important legislation, and I look forward to working with my colleagues to ensure it is brought to the House Floor for a vote,” Meuser said. “The U.S. is already taking action on fossil fuels and the SEC and the European Union have no jurisdiction in dictating further carbon emission standards on U.S. companies. However, this bill isn’t about climate change – it’s about following the law and protecting the sovereignty of American businesses.”
Meuser maintains the European Union should not have the authority to issue mandates on divisions of domestic companies operating on American soil.
“The American-based operations of U.S. companies should be beholden to U.S. law and no other governing body,” Meuser said. “My bill is the first step in ensuring we preserve and protect the sovereignty of American companies that have a presence in the European Union, and I intend to introduce legislation with an enforcement mechanism in the coming months.”
The legislation was introduced in response to a legislative package from the European Commission, the Corporate Sustainability Due Diligence Directive (CS3D) requiring companies operating in the European Union to identify, disclose, and take steps to mitigate the negative impact of their activities on the environment, pollution, environmental degradation, and biodiversity loss, bill proponents noted.