The TPP’s Financial Data Carve Out—USTR Closes a Loophole for Digital Protectionists

Nigel Cory July 7, 2016
July 7, 2016

The Obama administration has taken a key step in fixing its decision to exempt financial data from the Trans-Pacific Partnership trade agreement’s otherwise groundbreaking rules to protect cross-border data flows, writes Nigel Cory in Innovation Files. As ITIF recently argued, this rule was unnecessary and redundant, and created a dangerous loophole that could be misused for protectionist purposes by other countries, such as China, India, and Russia. Thankfully, this patch, if successfully applied, will help reduce the likelihood that other countries could misuse this loophole.