The United States has engaged in diplomatic efforts to influence the implementation of the European Union’s Corporate Sustainability Due Diligence Directive (CSDDD). The CSDDD is a legislative framework designed to hold large companies accountable for human rights and environmental impacts within their supply chains.

According to reports, the US government is advocating for a modification to the directive that would exempt non-EU firms from its requirements. The primary concern expressed by US officials is that the current scope of the directive could place an undue regulatory burden on foreign companies operating within the European market. By limiting the directive to EU-based firms, the US argues that it would prevent potential trade friction and ensure that international companies are not subjected to extraterritorial legal standards that conflict with their domestic regulations.

Critics of the US position argue that exempting non-EU firms would create a competitive disadvantage for European companies, who would face stricter compliance costs than their global counterparts. Proponents of the directive maintain that the legislation is necessary to ensure global supply chain transparency, regardless of a company's headquarters. As the EU continues to finalize the technical details of the directive, the tension between international trade interests and environmental/social governance standards remains a central point of negotiation.