Stop EU Overreach Act

This bill requires the United States Trade Representative (USTR) to launch a Section 301 investigation into specific European Union (EU) measures that are deemed to have significant extraterritorial reach. These measures, including the Corporate Sustainability Due Diligence Directive (CS3D), the Corporate Sustainability Reporting Directive (CSRD), the Deforestation Regulation (EUDR), and the Carbon Border Adjustment Mechanism (CBAM), impose mandatory obligations on U.S. companies operating outside EU territory. Congress finds these regulations burden U.S. commerce, conflict with U.S. law, and undermine fair trade principles by requiring extensive global supply chain mapping, sustainability reporting, and third-party verification.

The USTR must initiate this investigation within 30 days of the bill's enactment to determine if these EU measures constitute an unreasonable or discriminatory act, policy, or practice burdening U.S. commerce. The investigation's scope may include assessing compliance costs for U.S. persons, their legal liability exposure, and competitive disadvantages. During the investigation, the USTR is required to consult with affected U.S. persons, trade associations, and labor representatives, and coordinate with various federal agencies.

A determination must be made within 12 months, with a possible 60-day extension. If the USTR makes an affirmative determination, it must consider appropriate actions under Section 301(c) of the Trade Act of 1974, which could include addressing imports from EU member states, suspending trade agreement benefits, or imposing duties. The bill also mandates reporting requirements for the USTR and includes sunset provisions, allowing the requirements to terminate for individual EU measures if their extraterritorial obligations on U.S. persons are eliminated or a binding agreement is reached.