Data and Digital Trade

A modern economy with international businesses, whether selling goods or services, is reliant on data as much as on people. Within this, digital trade has gained increased importance, whether in terms of electronic delivery of international services, or the innovations in various areas from financial services to cars with increasingly sophisticated computers.

All developed countries have had to adjust policy and trade frameworks accordingly, and the UK has been no exception. This was made more challenging by the absence of globally agreed rules, particularly for a UK seeking to find our place at a time of increasing signs of data protectionism. This session looked at the UK’s international position with regard to digital trade and data, considering the trends and opportunities, as well as the threats such as other countries restricting business operations.

Professor L. Alan Winters, and Alison Williams co-chaired this session.

Witnesses:

• Dr Emily Jones, Associate Professor in Public Policy & Director of the Global Governance Economic Programme, Blavatnik School of Government, University of Oxford 

• Javier Ruiz Diaz, Digital Policy & Advocacy Consultant, Ruiz Macpherson Ltd & Expert Advisor to UK Government on Digital Trade and IP 

• Sabina Ciofu, Head of EU and Trade Policy, techUK

• Adam Bowering, Policy Advisor, European Parliament (Data protection and security issues)

• Nick Ashton-Hart, Geneva Representative of the Digital Trade Network & Special Advisor (International Internet Policy), International Chambers of Commerce (ICC)

• Duncan McCann, Senior Researcher, New Economics Foundation (NEF)

• Jim Killock, Executive Director, Open Rights Group

INTRODUCTION

A modern economy with international businesses, whether selling goods or services, is reliant on data as much as on people. Digitalisation supported by data flows continues to transform trade, whether in terms of electronic delivery of international services, or the innovations in various areas from financial services to cars with increasingly sophisticated onboard systems.

All developed countries are having to adjust policy and trade frameworks accordingly, and the UK is no exception. This is made more challenging by the absence of globally agreed rules, particularly for a UK seeking to find its place at a time of increasing signs of data protectionism.

This session looked at the UK’s international position with regards to digital trade and data, considering the trends and opportunities, as well as the threats such as other countries restricting business operations.

ISSUES AND RECOMMENDATIONS

STANDARDS:

• The UK should look to operate with the highest standards

• The impact of costs and benefits of divergence have to be considered very carefully.

DIGITAL STRATEGY:

• The UK should adopt a digital strategy for any prospective trade agreement, and to benefit the Government more generally

• There should be greater engagement with groups in civil society and small businesses to ensure policy recommendations are practical

• The UK should be cautious about committing to specifics in treaties whilst the policy remains uncertain, and instead seek regulatory cooperation or at most a memorandum of understanding

• The impact on small and medium-sized businesses must be considered in greater depth with tailored support as necessary

• Maintaining data adequacy with the EU is very important.

CPTPP CONDITIONS:

• The Government should be very careful about commitments including on mutual recognition.

KEY QUOTES

“If you’re an advanced economy and you're in our position on services, number two in the world, you’re going to pick the highest standard that allows you to work with everyone and that’s the EU. So diverging from that doesn't really get us anywhere because other countries are converging on the EU standard, even if somewhat unwillingly.” Nick Ashton-Hart, Geneva Representative of the Digital Trade Network

“Digital trade underpins almost every business and is worth hundreds of billions to our economy. While the flow of data continues with our trade partners, we are entering choppy waters as we try to balance the personal aspects, the red tape for businesses and the challenges for our public services. We need to have a national conversation about all of this.” Professor L. Alan Winters, Commissioner & Director of the UK Trade Policy Observatory, University of Sussex

“We did some work on what the impacts would be of the UK losing adequacy. We very conservatively put the figure that UK companies would need to engage in as at least £1.6bn worth of compliance costs." Duncan McCann, Senior Researcher, New Economics Foundation

“Scrapping data protections could further damage Britain’s international standing as EU countries and other democratic nations move to clamp down on the misuse of personal data by big corporations.” Adam Bowering, Policy Advisor, European Parliament,

With the challenges facing Britain’s trading relationships today and in the future, it is clear that the Government should be maintaining strong data protection and not deregulating which, as we heard today, could create significant problems for our growing digital trade.” Hilary Benn MP, Co-Convenor of the UK Trade & Business Commission