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HR 9892

Stop EU Overreach Act

119th Congress Introduced by Jodey Arrington and 7 co-sponsors

The bill requires a USTR-led Section 301 investigation into EU extraterritorial measures (CS3D, CSRD, EUDR, CBAM) to assess and counter burdens on U.S. commerce.

Introduced in House
0
WeVote Research Nonpartisan
Bill Summary · HR 9892

HR 9892 — Stop EU Overreach Act (Session 119)

Purpose and intent

  • This bill directs the United States Trade Representative (USTR) to initiate a Section 301 investigation under the Trade Act of 1974 against certain European Union (EU) measures that impose extraterritorial duties on United States persons.
  • The overarching goal is to address what proponents view as burdening, discriminatory, or extraterritorial regulatory actions by the EU that affect U.S. commerce and undermine U.S. law and fair trade principles.

Key provisions and changes proposed

  • Short title: The act is named the Stop EU Overreach Act.
  • Findings: Congress identifies
    • a national interest in shielding U.S. commerce from extraterritorial regulation that conflicts with U.S. law and reciprocal trade principles;
    • EU measures (CS3D, CSRD, EUDR, CBAM, and related rules) with extraterritorial reach affecting global supply chains, reporting, due diligence, deforestation safeguards, emissions accounting, and penalties;
    • concerns about extraterritorial scope outside EU territory and potential conflicts with U.S. fiduciary duties, securities laws, and energy/environmental policy;
    • commitments from a 2025 EU framework statement to avoid undue restrictions on transatlantic trade, which proponents argue have not been fully resolved.
    • support for using Section 301 to push back on such measures.
  • Section 301 investigation (new Section 3):
    • The USTR must initiate a Section 302(b) investigation within 30 days of enactment to determine if EU measures constitute an unreasonable or discriminatory act or policy burdening U.S. commerce under Section 301(b).
    • The investigation may cover: costs of compliance (due diligence, reporting, verification), liability exposure for U.S. persons for actions of foreign subsidiaries, and competitive disadvantages faced by U.S. companies.
    • If prompted by pre-enactment actions, USTR can incorporate similar information from petitions or unilateral initiations and must notify Congress within 30 days.
    • The USTR is to consult with affected U.S. persons, trade associations, labor representatives, and coordinate with Commerce, State, Energy, Agriculture, Defense, EPA, and the U.S. ITC.
    • A determination must be made within 12 months of initiation, with one possible 60-day extension for extraordinary circumstances.
    • If an affirmative determination is made, USTR must publish the finding and consider action under Section 301(c) (which could include targeting EU imports, suspending trade benefits, or imposing duties).
    • If negative, USTR must provide a detailed explanation to Congress.
  • Reporting requirements:
    • An initial report within 90 days after enactment detailing actions taken, consultations with the EU, and preliminary burden assessment.
    • A determination report within 30 days after a Section 3(e) determination, covering findings, whether the determination is affirmative or negative, proposed remedial actions, and anticipated effects on U.S. commerce and the U.S.-EU trade relationship.
  • Rule of construction:
    • The act does not cap presidential or USTR authority to negotiate or modify trade agreements, does not expand other powers, and does not itself declare EU measures as violations of law or trade agreements.
  • Sunset and partial sunset:
    • Partial sunset: The investigation requirements for an individual extraterritorial measure terminate once the EU repeals or amends the measure to eliminate extraterritorial obligations on U.S. persons or enters a binding agreement ensuring U.S. exemption.
    • Full sunset: The entire act terminates when the USTR certifies that all covered extraterritorial measures have been fully repealed/amended or binding agreements are in place for all covered measures.
    • Certification must state that burdens on U.S. commerce have been fully eliminated for the relevant measure.
  • Definitions:
    • Covered extraterritorial measures: EU directives and regulations related to corporate sustainability due diligence (CS3D), sustainability reporting (CSRD), deforestation and forest degradation (EUDR), CBAM, or any successor measures imposing similar obligations.
    • Extraterritorial obligations: Requirements applicable to U.S. persons outside the EU, including operations of subsidiaries, supply/value chain obligations, and sustainability/emissions reporting.
    • United States person: U.S. citizens and entities organized under U.S. law (including subsidiaries/affiliates).
    • Appropriate congressional committees: House Ways and Means and Senate Finance.

Who and what would be affected

  • Affects United States persons (companies, their U.S. operations, and their worldwide supply chains) subject to EU extraterritorial measures in the defined areas.
  • Potential U.S. industries with global supply chains, particularly those in sectors impacted by due-diligence, emissions reporting, deforestation-related requirements, and CBAM-related costs.
  • USTR and several federal agencies (Commerce, State, Energy, Agriculture, Defense, EPA, ITC) in terms of coordination for investigations and potential policy responses.
  • EU-U.S. trade relationship, depending on investigation outcomes and any resulting actions (tariffs, trade remedies, or other measures).

Procedural and timeline aspects

  • Initiation: USTR must begin the Section 302(b) investigation within 30 days of enactment and notify Congress.
  • Scope and consultations: Investigation may cover compliance costs, liability exposure, and competitive disadvantages; mandatory consultations with affected parties and agencies.
  • Determination deadline: A final determination within 12 months of initiation, with a possible 60-day extension.
  • Post-determination actions: If affirmative, potential actions under Section 301(c); if negative, a formal congressional explanation.
  • Reporting: Initial report within 90 days; subsequent determination report within 30 days after a Section 3(e) determination.
  • Sunset mechanics: Partial sunset tied to EU repeal/amendment or binding U.S.-EU agreement for specific measures; full sunset upon satisfaction for all covered measures.
  • Legislative scope remains limited to the investigation and potential actions under existing trade authorities; no prescriptive amendments to U.S. law beyond initiating the Section 301 process.

Summary takeaways

  • HR 9892 seeks to counter perceived EU extraterritorial overreach by mandating a USTR-led Section 301 investigation into specific EU sustainability and trade-related measures.
  • It outlines a structured process with consultations, timelines, and potential actions or remedies to reduce burdens on U.S. commerce.
  • The bill provides a built-in sunset mechanism to ensure that action closes once EU measures are repealed, amended, or otherwise neutralized for U.S. interests, while preserving existing U.S. trade negotiating authorities.

Compiled from official sources — confirm details with the bill’s official record.

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