H.R. 9892 — Stop EU Overreach Act

This section states findings that the United States has a national interest in protecting United States persons from extraterritorial regulatory actions by foreign governments, including the European Union's Corporate Sustainability Due Diligence Directive, Corporate Sustainability Reporting Directive, Deforestation Regulation, and Carbon Border Adjustment Mechanism. It finds that these measures impose global supply chain, due diligence, reporting, and verification requirements on United States companies that conflict with United States law and constitute unreasonable trade practices under section 301 of the Trade Act of 1974.

This section directs the United States Trade Representative to initiate within 30 days of enactment a section 301 investigation into whether covered European Union extraterritorial measures impose unreasonable or discriminatory burdens on United States commerce. It requires the investigation to examine compliance costs, legal liability exposure, and competitive disadvantages for United States persons; mandates consultation with affected businesses, trade associations, labor representatives, and specified federal agencies; sets a 12-month deadline for a determination (extendable once by 60 days); and requires publication of an affirmative determination with consideration of remedies including duties on European Union imports or suspension of trade agreement benefits.

This section directs the United States Trade Representative to submit an initial report to the appropriate congressional committees within 90 days of enactment covering compliance actions under section 3(a), any consultations with the European Union, and a preliminary assessment of burdens on United States commerce from covered extraterritorial measures. It also requires a determination report within 30 days of any determination under section 3(e) that includes findings, the determination’s affirmative or negative status with proposed remedial actions if applicable, and an assessment of effects on United States commerce, consumers, and the United States-European Union trade relationship.

This section clarifies that the Act does not limit the authority of the President or the USTR to negotiate, enter into, or modify trade agreements with the European Union; affect any other authority of the USTR or the President under the Trade Act of 1974 or other law; or constitute a finding that any EU act, policy, or practice violates federal law or a U.S. trade agreement.

This section terminates the requirements of the Act for an individual covered extraterritorial measure upon USTR certification to the appropriate congressional committees that the European Union has repealed or amended the measure to eliminate extraterritorial obligations on United States persons or entered a binding agreement exempting United States persons from such obligations. It provides for full termination only after the conditions are met for every covered measure and requires each certification to determine that the action fully eliminates the burden on United States commerce.

This section defines terms used in the Act, including "appropriate congressional committees" as the House Committee on Ways and Means and the Senate Committee on Finance; "covered extraterritorial measures" as EU Directive 2024/1760 on corporate sustainability due diligence, Directive 2022/2464 on sustainability reporting, Regulation 2023/1115 on deforestation-free commodities, Regulation 2023/956 establishing the Carbon Border Adjustment Mechanism, and any substantially similar successor measures; "extraterritorial obligations" as requirements applicable to U.S. persons regarding overseas operations, subsidiaries, supply chains, labor standards, emissions, or sustainability; "United States person" as U.S. citizens and entities organized under U.S. or state law; and "USTR" as the United States Trade Representative.