WASHINGTON—Global free trade in data is under “serious threat” from protectionist policies that are balkanizing the 21st century economy by limiting cross-border data flows, argued Information Technology and Innovation Foundation (ITIF) Founder and President Robert D. Atkinson in testimony today before the House Judiciary Subcommittee on Courts, Intellectual Property, and the Internet. Atkinson urged U.S. policymakers to protect and promote free trade in data by building on the progress of the Trans-Pacific Partnership (TPP) while alleviating international tensions around legitimate law enforcement and national security concerns.
“Free trade in data is critical to the U.S. economy,” said Atkinson. “It’s not just a Silicon Valley thing. Car makers, mining companies, banks, and retailers all depend on moving data across borders and analyzing it in real time. Large corporations aren’t the only ones relying on free trade in data, either. In fact, small and medium-sized U.S. companies make up one-quarter of digital trade sales and fully one-third of digital trade purchases.”
Atkinson noted that the U.S. International Trade Commission has estimated digital trade adds as much as $710 billion to the U.S. economy while creating 2.4 million jobs.
“Unfortunately, global free trade in data is under serious threat,” Atkinson said. “Many nations, for a variety of motivations—some related to privacy and security concerns, many related to naked protectionism—are putting in place policies to balkanize the data economy by limiting cross-border data flows. The task now is for policymakers to continue building on the progress that negotiators have made in the TPP while at the same time alleviating tensions in the law enforcement and national security arena by embracing needed reforms. This is critical for the digital economy. The United States cannot allow other countries to levy what is effectively a ‘privacy tariff’ on companies in nations that do not adopt their rules.”
To protect and promote free trade in data, Atkinson outlined a specific series of policies the United States should undertake:
-Negotiate strong cross-border data flow protections in new trade agreements, such as the Trade in Services Agreement (TiSA), the Transatlantic Trade and Investment Partnership (T-TIP), and a WTO “Data Services Agreement.”
-Take the lead on reforming government access to data so other countries cannot invoke concerns about government “snooping” as an excuse to restrict cross-border data flows, even if they have signed agreements covering the issue.
-Partner with Europe to craft a “Geneva Convention on the Status of Data” to resolve international questions of jurisdiction and transparency regarding the exchange of information.
-Address European concerns about privacy protections for their citizens’ data, with the Senate following the House’s lead to pass the Judicial Redress Act.
-Strengthen mutual legal assistance treaties (MLATs) so that, where appropriate, law enforcement can gain access to data overseas.
-Support strong encryption to ensure consumers have access to secure technologies without government backdoors.
“Enabling people and enterprises to engage in digital commerce without geographic restrictions is critical to America’s future. We are already using data in innovative new ways to create incredible value for the economy and society. So policymakers need to be equally visionary in shaping rules that protect citizens’ rights to privacy without unduly encumbering the catalytic economic growth potential that comes from free trade in data,” concluded Atkinson.
Read Atkinson’s full testimony.
