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May 21, 2024 at 10:05AM
The digital trade policy landscape has been dominated by disputes over data privacy and e-customs duties, while cybersecurity has seen steady progress. Concerns around GDPR, digital taxes, and US policy shifts on cross-border data flows have caused tensions. However, there is hope in cybersecurity cooperation, highlighted in a report on cybersecurity provisions in free trade agreements. The US Trade Representative should capitalize on this opportunity in digital trade policy.
Based on the meeting notes, here are the key takeaways:
1. Despite ongoing tensions over data privacy and cross-border data flows, progress is being made in the area of cybersecurity in digital trade policy.
2. The European Union’s GDPR and subsequent transatlantic data flow disputes initially sparked digital trade tensions, while negotiations also focused on digital taxes and customs duties at the OECD and WTO.
3. The US’s unexpected withdrawal of support for cross-border data flows, data localization, and source code review in WTO negotiations upended decades of digital trade policy, prompting calls for the US government to reverse its decision.
4. Cybersecurity policy has facilitated more international cooperation and remains less contentious compared to other digital trade issues, as it is seen as foundational to trust in the digital economy.
5. The “Guarding Global Commerce” report from the Coalition to Reduce Cyber Risk assesses cybersecurity provisions in 11 free trade agreements, noting a growing number of comprehensive cybersecurity provisions since 2018.
6. The World Trade Organization Joint Statement Initiative on eCommerce and future trade discussions between the US and Taiwan offer opportunities to make further progress in digital trade policy, with specific reference to the adoption of language mirroring the Singapore–UK Digital Economy Agreement and incorporating coordinated vulnerability disclosure requirements for critical infrastructure.
These takeaways highlight the importance of cybersecurity in digital trade policy, the challenges in negotiations on other digital trade issues, and the potential for further progress in shaping digital trade agreements.