As the Biden administration continues negotiating international trade initiatives, U.S. Sen. Todd Young (R-IN) urged the federal government to include new data governance and digital trade rules.
“It is a shared understanding throughout the global community that establishing digital policies to regulate the transfer and use of information, data, software, and technology will drive the future of international trade,” wrote Sen. Young and U.S. Sen. Tom Carper (D-DE) in an Oct. 13 letter sent to United States Trade Representative (USTR) Ambassador Katherine Tai. “Ultimately, it is critical that the United States assume a leadership role in digital trade, as it is a fundamental catalyst for American competitiveness.”
Specifically, the lawmakers noted that if the digital initiatives within the Indo-Pacific Economic Framework for Prosperity (IPEF) are effectively negotiated in close coordination with Congress, then the U.S. has an opportunity to lead the development of guiding principles for the future of trade and global commerce.
These guiding principles, according to the senators, should be pursued by the U.S. — in the IPEF as well as in other current and future negotiations — to make any new digital trade standards transparent, inclusive, interoperable, and beneficial, particularly for small and medium-sized enterprises (SMEs).
Sen. Young and his colleague outlined four key principles to be pursued: First, the U.S. must advocate for policies that permit the free flow of data, which is essential for fueling the digital economy. Second, the U.S. should build a trusted framework with its trading partners and allies to align on digital policies and develop a unified set of standards, enabling more seamless data flow across borders. Third, the IPEF and future negotiations must ensure that the benefits of digital trade extend to SMEs, working to bridge the digital divide. And fourth, the U.S. should consider reasonable domestic stakeholder concerns about potential risks related to the transmission of sensitive data and work with our partners to appropriately mitigate global cybersecurity and data privacy risks, they wrote.
“These principles are foundational for developing multilateral and more robust digital trade arrangements,” the senators wrote.
Doing so also presents an opportunity for the U.S. to counter efforts by its trading partners, including China and the European Union, to pursue digital sovereignty policies that restrict or prevent American companies from operating in their markets, according to their letter, and also would provide SMEs with the opportunity to export and reach customers globally, allowing for their growth.
“The digital economy is a major source of existing and future U.S. jobs and growth, and strong digital disciplines can unlock new global opportunities to benefit America’s manufacturers, workers, and small businesses,” they wrote.