The US Government stated that the EU's Corporate Sustainability Due Diligence Directive (CSDDD) and Corporate Sustainability Reporting Directive (CSRD) pose undue restrictions on transatlantic trade. It argued that the directives' extraterritorial reach and costly supply chain due diligence obligations would adversely impact US businesses' competitiveness and create duplicative obligations, violating international comity. The US specifically requested that the EU limit the directives' application to EU subsidiaries or business partners of US firms, or to goods/services produced in the EU, and prohibit penalties based on non-EU revenue and private rights of action without official supervisory findings.