Digital Trade Act, to Nix Cross-Border Data Limits, Gets Tech and Telco Support
The Digital Trade Act would prevent or eliminate cross-border Internet data flow restrictions through the establishment of several negotiating principles aimed at addressing digital trade issues in future U.S. trade agreements, said Sen. Ron Wyden, D-Ore. He and Sen. John Thune, R-S.D., introduced the legislation Tuesday, they said a news release (http://1.usa.gov/1cBIbOo). They said the bill would prohibit localization requirements for data and computing infrastructure and ensure laws affecting websites are consistent with U.S. law. The Computer & Communications Industry Association and Verizon praised the bill.
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Economic growth and innovation are “threatened by rising digital protectionism by several of our trading partners,” said Thune in a news release (http://1.usa.gov/1hNdYjd). “It is imperative that the U.S. fight for strong rules to ensure that American businesses have the freedom to compete and innovate all around the world. Our common-sense legislation would establish important negotiating principles for international agreements affecting Internet-enabled commerce.” Thune’s office said it’s “hopeful” the Digital Trade Act will have a hearing in January before the Subcommittee on International Trade, Customs and Global Competitiveness, where Wyden is chairman and Thune is ranking member.
"America’s trade negotiating objectives must reflect the fact that the Internet represents the shipping lane for 21st Century goods and services,” Wyden said. “U.S. digital exports are beating imports by large margins, but out-dated trade rules threaten this growth by providing opportunities for protectionist policies overseas."
The legislation would complement the World Trade Organization trade facilitation pact sealed in recent days by increasing access to the global market, said National Foreign Trade Council President Bill Reinsch in a news release (http://bit.ly/1jP49AI). The trade facilitation pact, brokered at the WTO ministerial summit in Bali, Indonesia, aims to reduce costs and improve the speed and efficiency of customs procedures. The bill would stem emerging cases of global digital protectionism, said Reinsch. “We also look forward to emphasizing the importance of a number of these principles -- most urgently, preventing barriers to the movement of electronic information across borders and prohibiting measures that condition market access or other commercial benefits on localization of data, infrastructure, or investment -- in legislation to grant the President Trade Promotion Authority.”
U.S. trade policy has “failed to keep pace” with an increasingly digital-dominated global economy, said Computer and Communications Industry Association CEO Ed Black (http://bit.ly/1aW40DQ). “In directing our trade negotiators to remove barriers to the free flow of information across borders, to reject mandates on location of IT infrastructure, and to ensure that U.S. Internet platforms are not subject to unfair or discriminatory liability exposure overseas, Senators Wyden and Thune have identified some of the main impediments to digital trade."
Verizon sees the bill as “a much-needed step to ensure that the digital trade routes that are so crucial to the U.S. economy and global competition remain open and free of cross-border barriers,” said Senior Vice President-Federal Government Relations Peter Davidson. The bill would “further empower the U.S. Trade Representative in seeking binding and enforceable provisions that promote, enhance and protect those engaged in Internet-enabled commerce and digital trade,” he said. ,