U.S. Rep. Fred Upton (R-MI) proposed legislation that would assess how international data localization laws, which regulate how data is processed in different countries, impact each country’s economy and cross-border commerce, including for the United States.
Rep. Upton on May 22 sponsored the Showing How Isolationism Effects Long-term Development (SHIELD) ACT, H.R. 7005, which would require the U.S. Secretary of Commerce and the Federal Trade Commission to conduct an assessment and analysis of regulations regarding data localization and to establish a list of such laws, as well as develop a means for maintaining, tracking and updating that list, according to the text of the bill.
“Data localization laws and other protectionist regulations hurt the global economy and limit access to markets for our innovators and small businesses,” Rep. Upton said. “The SHIELD Act will demonstrate how important cross-border data flow is to innovation, small businesses and our economy.”
The legislation is important as America seeks to understand the international landscape and to identify countries engaged in protectionism with their localization laws, according to Rep. Upton’s office.
“The Internet knows no bounds,” said Rep. Upton. “We should not artificially place them at our borders.”
The measure has been referred for consideration to both the U.S. House Energy and Commerce Committee and the U.S. House Foreign Affairs Committee.