Digital Trade and Data Protection: The Need for a Global Approach Balancing Policy Objectives

• Date: 01 June 2020

Vol. 4 No. 2

June, 2020

European Journal of Economics, Law and Social Sciences

IIPCCL Publishing, Graz-Austria

ISSN 2519-1284

Acces online at www.iipccl.org

42

Digital Trade and Data Protection:

The Need for a Global Approach Balancing Policy Objectives

Habib Kazzi

ProfessorofInternationalEconomicLawLebaneseUniversity

MENA Legal Consultant

LawyerattheParisBarAssociation

Abstract

In an increasingly data-driven global economy, this contribution analyses the ambiguous

relationships between global trade crossborder data ows and online privacy Free data

ows and localization constitutes an essential driver for Ecommerce and a precondition

for its potential success But legal and cultural dierences between national regional and

international regimes on privacy and data protection, as well as variable public policy

objectivespursuedbygovernmentsmayconstituteanewgenerationofnontaribarriers

to digital trade. This assessment makes more necessary a global approach balancing policy

objectiveswhileenablinginteroperabilitybetweendieringnationalregimesandremoving

discriminatorytradebarrierstocrossborderdataowsForthispurposeanynationalprivacy

policyorinternationalagreementshouldbebasedonthefollowingthreepillarsadopting

data protection principles and standards in accordance with OECD PrivacyGuidelines 

seingupeectivemechanismsforcooperationbetweennationaldataprotectioncommissions

orauthoritiesandprovidingforatradetestthatensuresfreeowsandlocalizationof

data between countries, while recognizing that sometimes measures are necessary to achieve

legitimate policy objectives and, in this case, such measures should be the least trade restrictive,

non-discriminatory, and transparent.

Keywords: Digital Trade Data Flows Privacy Public Policy Objectives OECD Privacy

GuidelinesWTOPrinciples

Introduction

Trade policy crossborder data ows and online privacy have interrelated and

ambiguous relationships The rise of Ecommerce raises challenges for States and

citizensnotablythroughsecuringtransactionsdigitaltaxationandtheprocessingof

personaldatainthecontextofcrossborderowsanddatalocalizationCrossborder

dataowsunderlietodaysgloballyconnectedworldandareessentialtoconducting

internationaltradeandcommerceDataowsenablecompaniesandindividualsto

track global supply chains, transmit information for online communication, provide

crossborder services share research and support technological innovation CRS

Report

DataowsandtransferscantakevariousformsDataowssupportingtraditional

internationaltradeingoodsandservicesBBandBCDataowsthatareafull

component of international trade (creation of new players and innovative sectors);

and  internal corporate data ows through supply chain or human resources

management This might be information and communication of ideas exchanged