The following is the opinion and analysis of the writer:
Philip Bashaw
These are challenging times for Arizona farmers and ranchers. The cost of everything from fertilizer to fuel is surging, and reliable access to water is a growing concern.
Now comes word that a sweeping European Union regulation — known as the Corporate Sustainability Due Diligence Directive, or CS3D — could have further consequences for Arizona agriculture.
Under this EU Directive, companies will be required to conduct exhaustive reporting on the environmental and human rights impacts of their distribution and supply chains, not just in Europe, but worldwide, including in the U.S. Though this may sound well-intentioned, it will impose layers of additional bureaucracy and drive up costs for American consumers and businesses. An analysis by the Hudson Institute estimates that initial compliance costs for U.S. companies could range from $637 billion to more than $1 trillion, with recurring annual costs in the billions.
A typical Arizona farm illustrates the burden this would place on our food producers, manufacturers, fuel suppliers and other sectors. In 2023, Arizona shipped about $1.5 billion in agricultural exports abroad, ranking our state among the top five in the country for both processed and fresh vegetable exports. In turn, we depend on fertilizer, crop protection tools, farm equipment, diesel fuel and other inputs that have complex supply chains yet are essential to growing crops.
Even when Arizona producers comply with U.S. law, CS3D could require farms to track and report any environmental and human rights impacts across every step of production. That means added paperwork, reporting and compliance costs — expenses that ultimately lead to higher-priced goods at the grocery store or restaurant.
Like agriculture, CS3D would impose similar regulatory burdens on U.S. makers of gasoline, cars, computers, medical equipment, construction materials, appliances and other essential items. The CS3D regulations would have far-reaching consequences on all of our businesses – increasing costs for Arizona families struggling with inflation.
The U.S. already has strong laws that govern labor and environmental stewardship, reflecting our values and adopted through transparent, democratic processes. Arizonans deserve a voice in shaping these decisions that impact our lives — rules that should be written in Washington or Phoenix, not in the capitals of Europe.
Now is the time for Arizona’s federal representatives in Washington to protect American farmers, manufacturers and energy producers from this unnecessary EU burden. The Protect USA Act deserves strong support because it prevents U.S. companies from being subject to CS3D, safeguarding American producers and consumers from costly, overreaching foreign mandates.
Arizona farmers and ranchers face enough challenges already. They want to focus on feeding the country, not filling out needless paperwork. Please pass the Protect USA Act.
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