About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

1 [1] (July 30, 2024)

handle is hein.crs/goveqcw0001 and id is 1 raw text is: nfrm ng th eg slatved dea sinee 1914 Updated July 30, 2024 Digital Trade and Data Policy: Key Issues Facing Congress Digital trade includes trade in all goods and services for which orders are placed digitally. E-commerce generally refers to digitally ordered goods. Services that are digitally ordered may also be delivered digitally (e.g., online banking) or provided through a subscription (e.g., streaming or cloud services). Cross-border data flows are essential to the technologies used to digitally order and deliver goods and services, and to many facets of the digital economy, including digital platforms. Because of this, much debate on digital trade has focused on data policy and technology. Digital trade issues facing Congress include data privacy, data localization, artificial intelligence (AI), and regulation of the technology sector. Congress could also monitor outcomes and impacts of U.S. negotiations involving digital trade, and consider action to encourage or require the executive branch to pursue certain objectives. Measuring the Digita Economy Output in the U.S. digital economy, consisting mainly of e- commerce, digital services (e.g., telecommunication, internet, and cloud services), and infrastructure (software and hardware), was $4.3 trillion (9% of the value of all goods and services produced in the United States) in 2022 (most recent data available), an increase of 42% since 2017 (Figure 1). E-commerce was the largest activity by output, while cloud services was the fastest growing. Figure I. Digital Economy Gross Output 5,000 $ in billions All Other Priced 4,000 FDigital Services - Cloud Services -nternet& Data Services 3,000 - Hardware - 4 Software 2,000 49 _$Telecommunications Services 1,000 E-Commerce 2017 2022 Source: CRS calculations using U.S. Bureau of Economic Analysis (BEA) data. Note: Excludes federal nondefense digital services due to their small size ($402 million in 2017 and $457 million in 2022). The total value of digital trade flows is difficult to estimate in part because official international trade statistics do not explicitly measure e-commerce or trade in digitally ordered or delivered services. Some measures of trade in digital services exist and provide insight into the growth of digital trade over time. The U.S. Bureau of Economic Analysis (BEA) tracks trade in services that could be delivered digitally, including telecommunications, business, and information services. U.S. exports of such services were $626 billion in 2022 (67% of total U.S. services exports), an increase of 28% since 2017. This growth outpaced the 11% growth in total U.S. services exports during this time. Some international organizations are discussing how to improve the accuracy of statistics on digital trade, including enhanced tracking of international business-to-consumer (B2C) or business-to-business (B2B) e-commerce and cross-border data flows (see text box). Cross-Border Data Flows vs. Digital Trade Most cross-border data flows are transfers of information between servers unrelated to commercial transactions. Digital trade involves the cross-border transfer of a good or service for money in a commercial transaction. Some cross-border data flows are digital trade (e.g., the online purchase of a dataset from a foreign company) or related to a digital trade transaction (e.g., data flows associated with international e- commerce). As a result, the treatment of cross-border data flows may impact digital trade. Digital trade is increasingly interconnected with data policy and regulation of emerging technologies (e.g., Al) and digital platforms, both of which rely on cross-border data flows. U.S. Dtga Trade and Data Policy Until 2023, the United States generally supported policies in its free trade agreements (FTAs) that promote the free flow of data across borders with limited exceptions. In fall 2023, the Office of the U.S. Trade Representative (USTR) ended its support for certain proposed provisions in plurilateral negotiations on the Joint Statement Initiative (JSI) on E-commerce at the World Trade Organization (WTO) related to cross-border data flows, data localization, and source code. The United States also suspended digital trade talks in the Indo-Pacific Economic Framework for Prosperity (IPEF). USTR Katherine Tai attributed the decisions to the need for domestic policy space on digital economy issues given rapid technological advancement and shifting debates on technology regulation since the proposals were introduced in the WTO in 2019. The decision was supported by some Members of Congress who described the suspended provisions as a potential hindrance to data privacy, anti-monopoly, and other digital safeguards sought by the Biden Administration and some in Congress. Other Members criticized the decision as negatively impacting U.S. businesses and workers since e- commerce is vital to many industries and as ceding U.S. leadership to other governments such as China. Several industry groups across a range of sectors expressed concern with the potential for restrictions on data flows to harm American workers. A coalition of technology companies that support more competition in the app marketplace praised the decision and urged the Administration to replace the provisions with regulation of technology firms. Some

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Already a HeinOnline Subscriber?

Log In

profiles profiles most