Lawmakers launch bill to ‘protect’ US firms from EU due diligence requirements
The proposal gives the US President free range to take any action deemed necessary to protect US entities from foreign penalties.
Republican Senator Bill Hagerty has introduced a bill to prohibit US companies across a range of extractive and manufacturing industries from participating in foreign due diligence legislation – with the EU’s CSDDD as a clear target.
The Prevent Regulatory Overreach from Turning Essential Companies into Targets (PROTECT USA) Act states that no foreign due diligence law that goes further than US law may be applied to US companies. It also gives the US President free range to take “any action [they] determine is in the public interest to protect an entity integral to the national interests of the United States from an adverse action related to a foreign sustainability due diligence regulation”.
