USTR Should Stem Digital Protectionism Through Trade Negotiations, Say Lawmakers
U.S. Trade Representative Michael Froman should prioritize dismantling "protectionist" data flow policies through Trans Pacific Partnership, Transatlantic Trade and Investment Partnership, and Trade in International Services Agreement negotiations, said a group of 18 House members in a Dec. 13 letter (here). Some European Union (EU) officials are pushing initiatives that undermine the U.S. ability to compete in the European market, such as an EU only information sharing cloud and an EU information technology (IT) conglomerate, said the lawmakers.
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Protectionist EU IT policies threaten the $2.1 trillion in U.S. investment in the EU, the lawmakers added. “This mutually beneficial relationship would not be possible without constant streams of data between the EU and the U.S,” said the letter. “For global trade to succeed and grow, access to data outside of the country is essential to the farmer, miner, shipper, or travel agent, and halting cross-border data flows will, by many measures, simply stifle cross-border trade.” Congressional High Tech Caucus members Michael McCaul, R-Texas, and Doris Matsui, D-Calif., led the letter submission.
The lawmakers listed a number of issues of concern both in and out of the U.S. For instance, after issuing a decree that requires Brazilian federal government agencies use only federally provided telecommunications and IT services, Brazilian President Dilma Rousseff is pursuing a data localization legislation, said the lawmakers. “Meanwhile, some German officials have called on the EU to review Safe Harbor, the only mechanism through which U.S. and European companies can exchange information in compliance with the laws of the nations in which they conduct business,” said the letter. “Canada has increased the number of federal government Requests for Proposals (RFPs) invoking a ‘national security exemption’ and requiring IT vendors who bid for projects to keep all or portions of data within Canada.” Lawmakers recently introduced the Digital Trade Act of 2013 (see 13121121) in an effort to prevent or eliminate cross-border Internet data flow restrictions by establishing negotiating principles for digital trade issues in future U.S. trade agreements.