I recently wrote a column warning that the Biden administration is bringing Europe’s food wars to the U.S. Now the EU is bringing its war on free markets to U.S. companies. The EU recently passed a bill requiring all companies with profits of more than $500 million in Europe to adhere to progressive environmental, social and governance standards.
This is something I’ve been warning my listeners and readers about for over three years, and now it’s finally happened. It’s official: European standards of social justice will be imposed on America.
The only way this will change is for Congress and the President to act. Do you think they will act?
This is one of the greatest threats to American freedoms, both in the short and long term. This European law will force American companies to comply with European rules, values and environmental standards, indirectly imposing European ESG standards on countless American companies, including many small and medium-sized businesses.
Here’s what’s going to happen: The EU has established a very complicated ESG system that all companies must comply with. This includes both US-based “covered companies” and non-EU companies with operations in Europe. In other words, if you sell $500 million worth of goods in the US: Must comply with EU ESG standardsIf you sell $500 million worth of goods in Europe, you have to follow suit.
But that’s just the beginning. Not only your company, but all the companies you do business with must follow it. If you are a small company and you sell to a big company like Amazon, with a turnover of at least $500 million in Europe, you have to follow it.
Franchises and licensing agreements and subsidiaries of large corporations are also subject to the EU’s comprehensive ESG regime. This affects people who write books like me. My publisher, Simon and Schuster, sells books in Europe all the time and makes over $500 million in profits in those markets. Do I now have to comply? Thanks to Mercury Inc., I don’t have to do business with Simon and Schuster. But am I required to?
Most importantly, we need to ensure that all covered companies disclose their supply chains and value chains. Do you know what a supply chain and value chain is? These companies will need to comply with the relevant ESG rules.
Companies will also need to develop “climate change transition plans” and “prevention action plans.”
So if you make a part and sell it to someone who makes radios for Ford, you have to comply with European ESG standards, even if you have no direct relationship with Ford. See what that means? If you don’t comply in America, you can’t sell anything in Europe.
EU member states will be responsible for enforcing their own rules and imposing penalties. Private sector and activist groups will also be subject to the bill. Activist groups will be able to bring civil lawsuits against companies that do not comply with the guidelines. This opens up opportunities for activist lawyers.
Of course the EU will forgive China. For some reason no one thinks that the Chinese dictatorship, which gives its citizens social credit scores and forces them to work as slaves in concentration camps, should be held accountable. Do you think Europe would actually force Apple to pay a fine or stop production in China because its products were made by slaves? No.
I have a book in my museum. It is very rare because when the witch trials were going on in Europe, the king burned all the books. He burned them for calling the witch trials bullshit. The king wanted to continue the witch trials and get rid of his enemies, so he burned all the books that went against his story. That is exactly what is going to happen here. Companies like Apple, Facebook, Amazon, etc. are allowed to do business in Europe because they are doing “the king’s” work. Even though they are doing business with Chinese people! But any company that stands up and says “No, we won’t do that” will be destroyed. If they cooperate with the government in some way, they will be OK. If they dare to oppose them, they will be wiped out.
The only way this will change is for Congress and the President to act. Do you think they will? Don’t ignore this when you go to vote. Which candidate is most likely to stand up and say, “No! The United States is a huge market and we’re not playing your game. Europe will not stand alone.” It’s very important that you take this into consideration when you go to vote in November.
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