Peoria, Illinois – Today, Congressman Darin LaHood (IL-16) – Co-Chair of the Digital Trade Caucus – led a letter alongside his colleagues to President Trump, congratulating him on reaching a landmark deal with the European Union (EU) and asking him to continue holding the EU accountable to its commitments in addressing its discriminatory digital trade policies.
The current trade negotiations offer an opportunity to counter the EU’s unfair treatment of American firms and establish a level playing field.
“The current trade negotiations provide a historic moment to stand up against the EU’s unfair treatment of American firms and establish a level playing field,” the lawmakers wrote. “We strongly support comprehensive commitments that ensure the EU addresses its existing discriminatory laws and refrains from imposing similar measures in the future. Otherwise, the EU will simply replace existing policies with new laws that disadvantage American companies.”
The full text of the letter can be found here and below:
Dear President Trump:
We write to congratulate you on reaching a landmark deal with the European Union (EU) and to express our support for your efforts in addressing the EU’s discriminatory digital policies. During this administration’s ongoing trade negotiations, we encourage you to hold the EU to its commitment in addressing its digital trade barriers by eliminating discriminatory features of laws like the Digital Markets Act (DMA) and refraining from enacting similar discriminatory laws in the future, such as the EU Space Act.
The EU continues to target American innovators with extortionate and extraterritorial taxes, regulations, and fines, many of which were rightfully identified in your presidential memorandum on “Defending American Companies and Innovators from Overseas Extortion and Unfair Fines and Penalties.” Laws like the DMA, the Digital Services Act, and the Data Act are scoped to almost entirely capture American companies while leaving their European competitors untouched. They empower European regulators to make arbitrary and unreasonable compliance demands and then issue abusive fines that are completely divorced from any alleged harm. Perhaps most concerning is that by shutting out U.S. companies, Europe is simply opening its doors to Chinese technology and infrastructure.
It is widely understood within Europe and by outside observers that Europe’s regulatory experiment has been an abject failure. Europe’s overregulation and attempt to spur domestic technology champions by restricting and taxing American technology companies has resulted in a less competitive and innovative society. Reversing the status quo of overregulation is clearly in the best interest of both the United States and Europe.
Unfortunately, the lack of strong U.S. government leadership during the Biden administration gave the EU and member states like Germany the green light to target American innovators, and it has empowered other governments to consider similar policies, including Australia, Brazil, India, Japan, Korea, Singapore, Turkey, the United Kingdom and others. Your recent success in eliminating Canada’s discriminatory digital services tax shows what can happen with strong leadership and demonstrates to foreign governments that this administration will not sit idly by as they extort American companies.
The current trade negotiations provide a historic moment to stand up against the EU’s unfair treatment of American firms and establish a level playing field. We strongly support comprehensive commitments that ensure the EU addresses its existing discriminatory laws and refrains from imposing similar measures in the future. Otherwise, the EU will simply replace existing policies with new laws that disadvantage American companies. Thank you for your leadership. We stand ready to support you in these efforts.
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