Stop EU Overreach Act

(a) Initiation of investigation

(1) In general. Not later than 30 days after the date of the enactment of this Act, the USTR shall—

(A) initiate an investigation under section 302(b) of the Trade Act of 1974 (19 U.S.C. 2412(b)) to determine whether the covered extraterritorial measures imposed by the European Union on United States persons constitute an unreasonable or discriminatory act, policy, or practice that burdens or restricts United States commerce under section 301(b) of the Trade Act of 1974 (19 U.S.C. 2411(b)); and

(B) notify the appropriate congressional committees of such initiation.

(2) Scope of investigation. An investigation initiated under this subsection may include the following:

(A) The compliance costs imposed on United States persons, including the supply chain due diligence, emissions reporting and verification, deforestation traceability, sustainability disclosures, and third-party auditing costs.

(B) The legal liability exposure of United States persons for the acts of their subsidiaries or suppliers operating outside of the European Union.

(C) The competitive disadvantage suffered by United States persons relative to companies not subject to the covered extraterritorial measures.

(b) Petition or unilateral initiation of investigation

(1) In general. If, prior to the date of the enactment of this Act, the USTR unilaterally initiates an investigation, or is petitioned to initiate an investigation, which is substantially similar to the investigation required under subsection (a)(1), such investigation may include the information described in subsection (a)(2).

(2) Notification to Congress. Not later than 30 days after the date of the enactment of this Act, the USTR shall notify the appropriate congressional committees of an investigation initiated under paragraph (1).

(c) Consultation requirement. In conducting an investigation under this section, the USTR shall—

(1) consult with United States persons who may be affected by the extraterritorial obligations imposed by the covered extraterritorial measures;

(2) seek information from relevant trade associations and labor representatives; and

(3) coordinate with the Secretary of Commerce, the Secretary of State, the Secretary of Energy, the Secretary of Agriculture, the Secretary of Defense, the Administrator of the Environmental Protection Agency, and the Chair of the United States International Trade Commission.

(d) Determination deadline

(1) In general. Not later than 12 months after the date on which an investigation is initiated under subsection (a), the USTR shall make a determination under section 304 of the Trade Act of 1974 (19 U.S.C. 2414) to determine if any action may be taken under section 301 of such Act (19 U.S.C. 2411).

(2) Extension. The USTR may initiate one 60-day extension of the deadline described in paragraph (1) if extraordinary circumstances warrant such an extension. The USTR shall notify the appropriate congressional committees in writing of the reasons for such extension.

(e) Determinations and Action

(1) Affirmative determination. If the USTR makes an affirmative determination under subsection (d)(1), the USTR shall—

(A) publish such determination in the Federal Register; and

(B) consider appropriate action under section 301(c) of the Trade Act of 1974 (19 U.S.C. 2411(c)), which may include addressing imports from member states of the European Union, the suspension of trade agreement benefits, the imposition of duties commensurate with the burden imposed, or any other action which would eliminate the burden on United States commerce that is attributable to the CS3D’s extraterritorial provisions.

(2) Negative determination. If the USTR makes a negative determination under subsection (d) and determines that no action described in paragraph (1)(B) is warranted, the USTR shall transmit to the appropriate congressional committees a report explaining such determination.