Journal of International Economic Law · 2018 · 160 citations · 0 references
Public AffairsPublic PolicyGlobal GovernanceInternational TradeInternational Trade PolicyCross-border Data FlowsData GovernanceData ProtectionDigital DivideDigital GlobalizationDigital GovernanceCross-border FlowsDigital Foreign PolicyDigital Trade RulesEuropean Union PoliticsForeign RuleInternational Data GovernanceNational Data PolicyTransatlantic Data Transfers
Individuals, businesses, and governments increasingly use data to create internet‑delivered services, building a new economy based on cross‑border data flows, while the USA, EU, and China pursue policies that create three distinct data realms with different governance, presenting the WTO with a challenge and opportunity. These three data realms could undermine the WTO’s ability to govern trade in data flows, but they also pressure the realms to use WTO mechanisms to find common ground and may incentivize WTO members to create new data‑trade rules. The result is a new digital divide between the three data behemoths and other rule‑taker countries.
Individuals, businesses, and governments increasingly use data to create new services delivered via the internet. In so doing, they are creating a new economy built on cross-border data flows. The USA, the European Union, and China are using domestic and foreign policies to reap data-based economies of scale and scope. Essentially, they have created three distinct data realms with different approaches to data governance. As a result, they have fostered a new digital divide: between the three data behemoths and other countries that are rule takers. This situation presents the WTO with a challenge and an opportunity. These three data realms could undermine the ability of the WTO to govern trade in data flows, but it also creates pressures for the three data realms to use WTO mechanisms to find common ground among their approaches. Moreover, it could provide an incentive to WTO members to create new rules governing trade in data.