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What Your U.S. Company Needs to Know About European Regulations

March 19, 2025

What Your U.S. Company Needs to Know About European Regulations

If your U.S.-based food company does business in Europe, the regulatory landscape is shifting in ways that could impact your operations. The European Union is rolling out a wave of new EU food policies, including regulations, directives, and guidelines, that go beyond what many U.S. businesses are accustomed to. These policies aren’t just recommendations—they come with strict enforcement and potential financial penalties for non-compliance.

Whether you directly sell to European customers, source from EU suppliers, or operate within global supply chains that touch the EU market, now is the time to understand what steps you can take to ensure compliance.

Why EU Policies Matter for U.S. Food Companies

The EU has long been a leader in strict environmental and consumer protection legislation, and continues to put emphasis on sustainability, supply chain accountability, and corporate responsibility. Even if your company isn’t based in the EU, you can still be affected if you sell products there, source ingredients from EU suppliers, or work with European business partners.

EU food requirements often extend beyond direct producers and impact companies along the entire supply chain. That means U.S. businesses may need to track their environmental impact, report on human rights compliance, and ensure that suppliers meet sustainability standards.

Key Policies U.S. Companies Should Watch

Several upcoming and newly enforced EU food policies could affect how U.S. food businesses operate. Here are a few that should be on your radar:

  • Corporate Sustainability Reporting Directive (CSRD): Expanding corporate reporting requirements on environmental and social impact.
  • Guideline on Environmental Claims (Green Claims Directive): Setting new standards on how companies communicate sustainability claims to prevent greenwashing.
  • EU Deforestation Regulation (EUDR): Imposing strict requirements on proof of deforestation-free supply chains.
  • Packaging and Packaging Waste Regulation (PPWR): Establishing stricter rules on recyclability and sustainability of packaging materials.
  • Regulation Prohibiting Forced Labor (EFLR): Prohibiting products made with forced labor from entering the EU market.
  • Corporate Sustainability Due Diligence Directive (CSDDD): Holding companies accountable for human rights and environmental due diligence within their supply chains.
  • Supply Chain Act (LkSG): Requiring companies to assess and mitigate human rights and environmental risks within their supply chains.

Each of these is designed to ensure transparency, sustainability, and ethical business practices. They impact a wide range of business activities, from how companies track and report sustainability efforts to the materials they use in packaging and the labor practices of their suppliers. Whether it’s ensuring compliance with packaging standards, verifying supplier labor practices, or preparing sustainability reports, U.S. businesses need to act now to avoid supply chain disruptions, reputational risks, and restricted access to the European market.

Steps U.S. Companies Can Take to Meet EU Compliance Standards

Assess your EU market exposure. If you sell directly to EU customers or source from EU suppliers, map out where your business intersects with EU oversight. Understand which ones apply to your operations and develop a compliance plan.

Strengthen traceability and reporting. Many of these policies focus on supply chain visibility, requiring companies to document sourcing practices, carbon emissions, and ethical labor compliance. Implementing strong traceability systems now will save you headaches later.

Align with sustainability expectations. The EU is cracking down on vague or misleading environmental claims. If you market your products as sustainable, organic, or carbon-neutral, ensure your claims are backed by verifiable data and meet new EU requirements.

Engage with your supply chain. Compliance doesn’t just fall on your business, it also extends to your supply chain. Work with your trading partners to ensure they meet EU standards, whether it’s sustainable sourcing, emissions tracking, or packaging compliance.

Stay updated on timelines. Much of the new legislation is rolling out in phases over the next few years. Understanding deadlines, like the CSRD’s reporting requirements starting in 2025 or the EUDR’s enforcement in 2025, will help you stay ahead of compliance requirements.

How to Comply with EU Food Policies: Resources and Support

Understanding EU requirements will be essential for maintaining smooth operations and avoiding disruptions. With changes rolling out over the next few years, staying up to date on requirements and best practices is key. Here are some resources that provide guidance on how to comply:

  • Official EU Websites – The European Commission website (ec.europa.eu) provides official regulatory documents, guidelines, and updates.
  • Industry Associations – Trade organizations such as the Food Industry Association (FMI) or the Consumer Brands Association (CBA) often provide updates on international requirements.
  • Legal and Compliance Consultants – Firms specializing in global food requirements can help businesses interpret and implement compliance strategies.
  • Chambers of Commerce – U.S.-EU chambers of commerce often host webinars and events on navigating regulatory challenges.

Final Thoughts

The EU’s new food policies reflect a broader shift toward sustainability, ethical business practices, and greater corporate accountability. For U.S. food companies, adapting to these rules will not only help them avoid penalties, but also stay competitive in an evolving global marketplace. The businesses that take proactive steps to meet EU compliance standards today will be better positioned to maintain strong trade relationships with European partners and thrive in their global supply chain.

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