U.S. House Budget Chairman Jodey Arrington (R-TX) led a bipartisan contingent of 10 of his fellow congressional members in urging U.S. Trade Representative Jamieson Greer to push back on European Union (EU) energy regulations that threaten American exports and undermine the U.S.-EU energy partnership.
“The EU has enacted, or is in the process of enacting, several laws that restrict exports of U.S. energy products and components,” the members wrote in the July 23 letter. “These policies, including the EU’s Carbon Border Adjustment Mechanism (CBAM), Methane Regulation, and Corporate Sustainability Due Diligence Directive (CSDDD) discriminate against American producers and suppliers, even as the United States maintains some of the highest environmental standards in the world for energy production.”
In addition to the Methane Regulation and CSDDD limiting the export of fuels like liquified natural gas (LNG) and petroleum to the EU, the members noted that the EU’s CBAM is likely to restrict American exports of iron, steel, and aluminum that could be used to construct renewable power generation in Europe.
“EU regulatory barriers for energy products contributed to the U.S.’s $235.6 billion goods trade deficit with the European Union in 2024, which increased by nearly 13 percent compared to 2023,” wrote Rep. Arrington and his colleagues. “If the EU maintains these policies or modifies them to even further restrict American energy exports, this trade deficit will balloon even further and undermine the U.S.-EU energy partnership.”
As the administration continues negotiating an agreement with the EU, the lawmakers wrote that they “strongly support” Greer’s efforts to alleviate the barriers and allow reciprocal treatment for American energy producers exporting to the European market.
“Ensuring a level playing field will allow U.S. energy exports to the EU to increase significantly — a mutually beneficial outcome for both economies,” wrote the lawmakers, who also included U.S. Reps. Carol Miller (R-WV), Ron Estes (R-KS), Buddy Carter (R-GA), Vern Buchanan (R-FL), David Valadao (R-CA), and Luis Correa (D-CA).
The letter has garnered support from the U.S. Chamber of Commerce Global Energy Institute, the American Petroleum Institute, the American Exploration and Production Council, and the Energy Workforce and Technology Council.