EU pledges CSRD, CSDDD will not impose 'undue restrictions' on US trade

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🗞️ Driving the news: The EU has pledged that its sustainable finance regulations — specifically the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD) — will not impose "undue restrictions" on trade with the United States
• This assurance forms part of a joint statement issued as both sides advance discussions on a transatlantic trade agreement

🔭 The context: The CSRD and CSDDD are central pillars of the EU’s sustainability legislative framework, requiring companies to disclose environmental and human rights impacts and conduct due diligence across their supply chains
• These rules have raised concerns among US businesses and lawmakers, who view them as extraterritorial and burdensome
• The EU’s statement comes amid broader negotiations to strengthen economic ties while addressing divergent regulatory approaches

🌍 Why it matters for the planet: The EU’s sustainability directives are among the most ambitious globally, aiming to increase corporate accountability and drive ESG compliance across international operations
• Ensuring that such policies do not become trade barriers is key to maintaining momentum on global climate action and supply chain reform
• However, balancing environmental ambition with international cooperation remains a complex challenge

⏭️ What's next: Further negotiations between EU and US officials are expected in the coming months to clarify how compliance obligations will be handled for non-EU companies
• The EU may issue additional guidance or exemptions to ease concerns without diluting regulatory intent
• The outcome will shape the international alignment of sustainability standards and influence future trade and investment flows

💬 One quote: “We are committed to ensuring that our sustainability regulations remain compatible with open and fair trade, particularly with strategic partners like the United States,” – EU Commission representative (paraphrased from the joint statement).

📈 One stat: The CSRD is expected to apply to approximately 50,000 companies globally, including many large US-based multinationals operating in the EU market

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