U.S. Dairy Groups Challenge EU Sustainability Rules
The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) submitted comments to the European Union on August 13. Their response formed part of an EU consultation on guidance for implementing the Corporate Sustainability Due Diligence Directive, which requires companies operating in the bloc to identify, prevent and address environmental and labour risks in their supply chains.
The organisations said the directive could cause European companies to pass broad information requests, audits and compliance duties to upstream suppliers. In their view, American dairy farmers could face these demands even if they did not sell directly to an EU-based buyer or if their milk went into products marketed outside Europe.
NMPF and USDEC argued that EU sustainability requirements should not be applied to U.S. farms that already comply with American laws and regulatory systems. They urged the EU to concentrate due diligence on direct suppliers instead of extending obligations across entire supply chains. The organisations also said small and medium-sized businesses, including individual farms, should be protected from information requests that are intrusive, costly or difficult to complete.
The groups asked the EU to classify the United States as a lower-risk jurisdiction for assessments of environmental and labour-related risks. They recommended that companies covered by the directive rely mainly on official government records and use compliance with U.S. law as the benchmark for American operations. They also called for data requests to be confined to direct suppliers and for small and medium-sized enterprises to be excluded from such demands.
The directive may affect U.S. dairy exporters if European purchasers seek detailed information on farming methods, emissions, labour conditions and other sustainability measures. Larger processors may have more capacity to handle additional reporting, while smaller farms and suppliers may incur higher administrative expenses. The organisations said these requirements could raise the cost of serving the European market and create obstacles for companies seeking access to it.
NMPF is also asking the U.S. government to raise the issue in trade discussions with the EU. It supports the Stop EU Overreach Act, introduced in July by Representatives Craig Goldman, Jodey Arrington and Greg Steube. The bill would instruct the U.S. Trade Representative to begin a Section 301 investigation into EU sustainability measures with extraterritorial effects, including the due diligence directive, and to examine whether trade measures should be used to protect U.S. businesses. Comments from the U.S. Trade Representative to the EU reportedly included several concerns raised by NMPF and USDEC.
