The EU is Writing Rules for Texas Businesses & Congress Must Act
The EU is Writing Rules for Texas Businesses & Congress Must Act
The EU is Writing Rules for Texas Businesses.
Congress Must Act.
Texans should take notice of a sweeping European regulation now threatening our industry and other critical sectors of the US economy. The European Union’s Corporate Sustainability Due Diligence Directive (CS3D) requires companies, even those headquartered in the United States, to track and report on environmental and human rights practices across their entire supplier networks. It may sound well-intentioned, but as the largest goods-exporting state in the country, this regulation could have significant economic consequences impacting our supply chains for fuel, food, packaged goods, construction materials and other critical products.
CS3D would mean new layers of auditing and compliance that require more time spent on paperwork and fewer resources available for serving customers, hiring and investment. As companies are already managing tight margins and rising costs, new burdensome regulations won’t help companies grow.
An analysis by the Hudson Institute estimates compliance costs for U.S. companies could range from $637 billion to more than $1 trillion, with billions more in ongoing annual expenses. Texas, with its concentration of energy, manufacturing, agriculture and trade, would be among the states most affected.
That is why Texas’ representatives in Washington should act to protect American businesses from unnecessary foreign mandates by putting their support behind legislation like the Protect USA Act. Texas businesses deserve to compete under clear, practical rules set here at home, by representatives we know, not European bureaucrats.
The Texas Food and Fuel Association urges you to contact your Members of Congress and urge them to stand up for American businesses. Companies here should not be required to follow onerous rules that Americans voters had no role in shaping.