Regulating Cross-Border Data Flows in a Data-Driven World: How WTO Law Can Contribute

Abstract

While the free cross-border movement of data is essential to many aspects of international trade, several countries have imposed restrictions on these data flows. The pre-internet rules of the World Trade Organization (‘WTO’) discipline some of these restrictions, but they are insufficient. Unfortunately, so are the electronic commerce chapters in modern preferential trade agreements. This article argues that reformed WTO rules, that take account of the policy challenges of the data-driven economy, are required. These reforms would facilitate internet openness while ensuring consumer and business trust, promote digital inclusion of developing countries and incorporate clear exceptions for legitimate domestic policies.

Keywords: data flows, data regulation, trade, electronic commerce, WTO, preferential trade agreements, trust, digital inclusion, developing countries

JEL Classification: K33, F13