[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9892 Introduced in House (IH)]
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119th CONGRESS
2d Session
H. R. 9892
To require the United States Trade Representative to initiate an
investigation under section 301 of the Trade Act of 1974 with respect
to the European Union, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 23, 2026
Mr. Goldman of Texas (for himself, Mr. Arrington, Mr. Steube, Mr.
Bilirakis, Mr. Weber of Texas, Mr. Carter of Georgia, Mr. Pfluger, Mr.
Davidson, and Mr. Sessions) introduced the following bill; 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 301 of the Trade Act of 1974 with respect
to the European Union, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Stop EU Overreach Act''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) 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 commerce, conflict with United States law,
and undermine the principles of fair, reciprocal, and rules-
based international trade.
(2) The European Union has adopted and is implementing a
series of energy and environment-related directives and
regulations with significant extraterritorial reach, including
the Corporate Sustainability Due Diligence Directive (CS3D),
the Corporate Sustainability Reporting Directive (CSRD), the
Deforestation Regulation (EUDR), the Carbon Border Adjustment
Mechanism (CBAM), and related or successor measures.
(3) These extraterritorial measures impose burdensome
mandatory obligations on large companies operating in or
deriving significant revenue from the European Union. Such
obligations include global supply chain and value chain mapping
and due diligence, detailed sustainability and emissions
reporting, deforestation-free traceability and geolocation
requirements, third-party verification and auditing, public
disclosures, and substantial penalties with transposition and
implementation deadlines already in effect or approaching in
the near term.
(4) These extraterritorial measures apply to conduct,
operations, subsidiaries, affiliates, and supply or value
chains occurring wholly or substantially outside European Union
territory, including the United States operations and supply
chains of United States companies, regardless of whether such
conduct complies with United States law. This constitutes an
unreasonable and discriminatory trade practice burdening United
States commerce within the meaning of section 301(b) of the
Trade Act of 1974 (19 U.S.C. 2411(b)).
(5) The extraterritorial reach of these measures conflicts
with core principles of United States law, including limited
liability doctrines, State corporate fiduciary duties, Federal
securities requirements, and domestic energy and environmental
policy frameworks.
(6) In the August 21, 2025, Joint Statement on a Framework
on an Agreement on Reciprocal, Fair, and Balanced Trade, 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 regulations. The continued extraterritorial provisions
of these measures are inconsistent with that commitment.
(7) Notwithstanding the August 2025 commitments and the
European Union's subsequent amendments, these extraterritorial
measures continue to impose burdensome obligations on United
States persons. The European Union's own modifications have not
resolved the core problems this Act addresses.
(8) Numerous United States trading partners, including
Argentina, Australia, Brazil, India, South Africa, and the
United Kingdom, have expressed shared concerns about the
extraterritorial reach of these measures, reflecting a
multilateral, rules-based objection rather than a bilateral
dispute.
(9) Section 301 of the Trade Act of 1974 (19 U.S.C. 2411)
authorizes the United States Trade Representative to
investigate and respond to such foreign government practices,
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 trade.
SEC. 3. SECTION 301 INVESTIGATION.
(a) Initiation of Investigation.--
(1) In general.--Not later than 30 days after the date of
the enactment of this Act, the USTR shall--
(A) initiate an investigation under section 302(b)
of the Trade Act of 1974 (19 U.S.C. 2412(b)) to
determine whether the covered extraterritorial measures
imposed by the European Union on United States persons
constitute an unreasonable or discriminatory act,
policy, or practice that burdens or restricts United
States commerce under section 301(b) of the Trade Act
of 1974 (19 U.S.C. 2411(b)); and
(B) notify the appropriate congressional committees
of such initiation.
(2) Scope of investigation.--An investigation initiated
under this subsection may include the following:
(A) The compliance costs imposed on United States
persons, including the supply chain due diligence,
emissions reporting and verification, deforestation
traceability, sustainability disclosures, and third-
party auditing costs.
(B) The legal liability exposure of United States
persons for the acts of their subsidiaries or suppliers
operating outside of the European Union.
(C) The competitive disadvantage suffered by United
States persons relative to companies not subject to the
covered extraterritorial measures.
(b) Petition or Unilateral Initiation of Investigation.--
(1) In general.--If, prior to the date of the enactment of
this Act, the USTR unilaterally initiates an investigation, or
is petitioned to initiate an investigation, which is
substantially similar to the investigation required under
subsection (a)(1), such investigation may include the
information described in subsection (a)(2).
(2) Notification to congress.--Not later than 30 days after
the date of the enactment of this Act, the USTR shall notify
the appropriate congressional committees of an investigation
initiated under paragraph (1).
(c) Consultation Requirement.--In conducting an investigation under
this section, the USTR shall--
(1) consult with United States persons who may be affected
by the extraterritorial obligations imposed by the covered
extraterritorial measures;
(2) seek information from relevant trade associations and
labor representatives; and
(3) coordinate with the Secretary of Commerce, the
Secretary of State, the Secretary of Energy, the Secretary of
Agriculture, the Secretary of Defense, the Administrator of the
Environmental Protection Agency, and the Chair of the United
States International Trade Commission.
(d) Determination Deadline.--
(1) In general.--Not later than 12 months after the date on
which an investigation is initiated under subsection (a), the
USTR shall make a determination under section 304 of the Trade
Act of 1974 (19 U.S.C. 2414) to determine if any action may be
taken under section 301 of such Act (19 U.S.C. 2411).
(2) Extension.--The USTR may initiate one 60-day extension
of the deadline described in paragraph (1) if extraordinary
circumstances warrant such an extension. The USTR shall notify
the appropriate congressional committees in writing of the
reasons for such extension.
(e) Determinations and Action.--
(1) Affirmative determination.--If the USTR makes an
affirmative determination under subsection (d)(1), the USTR
shall--
(A) publish such determination in the Federal
Register; and
(B) consider appropriate action under section
301(c) of the Trade Act of 1974 (19 U.S.C. 2411(c)),
which may include addressing imports from member states
of the European Union, the suspension of trade
agreement benefits, the imposition of duties
commensurate with the burden imposed, or any other
action which would eliminate the burden on United
States commerce that is attributable to the CS3D's
extraterritorial provisions.
(2) Negative determination.--If the USTR makes a negative
determination under subsection (d) and determines that no
action described in paragraph (1)(B) is warranted, the USTR
shall transmit to the appropriate congressional committees a
report explaining such determination.
SEC. 4. REPORTING REQUIREMENTS.
(a) Initial Report.--Not later than 90 days after the date of the
enactment of this Act, the USTR shall submit to the appropriate
congressional committees a report including--
(1) the actions taken to comply with section 3(a);
(2) any consultations requested or initiated with the
European Union; and
(3) the USTR's preliminary assessment of the nature and
extent of the burden on United States commerce attributable to
the covered extraterritorial measures.
(b) Determination Report.--Not later than 30 days after making a
determination under section 3(e), the USTR shall submit to the
appropriate congressional committees a report including--
(1) the USTR's findings and determination;
(2) whether the determination is affirmative or negative
and if the determination is affirmative, a description of the
remedial action taken or proposed; and
(3) an assessment of the expected effect of such remedial
action on United States commerce, consumers, and the United
States-European Union trade relationship.
SEC. 5. RULE OF CONSTRUCTION.
Nothing in this Act shall be construed to--
(1) limit the authority of the President or the USTR to
negotiate, enter into, or modify trade agreements with the
European Union;
(2) affect any other authority of the USTR or the President
under the Trade Act of 1974 (19 U.S.C. 2101 et seq.) or any
other provision of law; and
(3) constitute an affirmative finding that any specific
act, policy, or practice of the European Union violates any
provision of Federal law or any trade agreement to which the
United States is a party.
SEC. 6. SUNSET.
(a) Partial Sunset.--
(1) In general.--The requirements of this Act, with respect
to an individual covered extraterritorial measure, shall
terminate on the date on which the USTR certifies to the
appropriate congressional committees that the European Union
has, with respect to such individual extraterritorial measure--
(A) repealed or formally amended the measure to
eliminate the application of the extraterritorial
obligations on United States persons; or
(B) 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 conduct,
operations, or relationships occurring outside the
territory of any member state of the European Union.
(2) Continuing application to other covered
extraterritorial measures.--A termination under subsection (a)
with respect to one individual covered extraterritorial
measures shall not affect the application of this Act to any
other extraterritorial measure.
(b) 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 (a)(1) have been satisfied with respect to
each covered extraterritorial measure.
(c) Certification Inclusion.--A certification under this section
shall include a determination that the repeal, amendment, or binding
agreement fully and effectively eliminates the burden on United States
commerce attributable to the relevant extraterritorial measure.
SEC. 7. DEFINITIONS.
In this Act:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Ways and Means of the House of
Representatives; and
(B) the Committee on Finance of the Senate.
(2) Covered extraterritorial measures.--The term ``covered
extraterritorial measures'' means--
(A) Directive (EU) 2024/1760 of the European
Parliament and of the Council of June 13, 2024, on
corporate sustainability due diligence and amending
Directive (EU) 2019/1937 and Regulation (EU) 2023/2859;
(B) Directive (EU) 2022/2464 of the European
Parliament and of the Council of December 14, 2022,
amending Regulation (EU) No 537/2014, Directive 2004/
109/EC, Directive 2006/43/EC and Directive 2013/34/EU,
as regards corporate sustainability reporting;
(C) Regulation (EU) 2023/1115 of the European
Parliament and of the Council of May 31, 2023, 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 (EU) No 995/2010;
(D) Regulation (EU) 2023/956 of the European
Parliament and of the Council of May 10, 2023,
establishing a carbon border adjustment mechanism
(Carbon Border Adjustment Mechanism or CBAM); or
(E) any successor directive, regulation, or
implementing measure of the European Union or any
member state of the European Union that imposes
substantially similar extraterritorial due diligence,
reporting, emissions accounting, deforestation-related,
carbon pricing, or sustainability obligations on United
States persons as though under the authorities
described in subparagraphs (A) through (D).
(3) Extraterritorial obligations.--The term
``extraterritorial obligations'' means, with respect to the
covered extraterritorial measures, any requirement applicable
to a United States person with respect to the conduct,
operations, or relationships of such a person occurring outside
the territory of the European Union, including obligations
relating to--
(A) the operations of subsidiaries or affiliates;
(B) supply chain or value chain partners; or
(C) business practices, labor standards, or
environmental measures, emissions reporting, or
sustainability disclosures.
(4) United states person.--The term ``United States
person'' means--
(A) a United States citizen; and
(B) an entity organized under the laws of the
United States or any State, including any subsidiary or
affiliate of such entity.
(5) USTR.--The term ``USTR'' means the United States Trade
Representative.
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