Experts call for data trade strategy as new deals expose small business, consumer rights and privacy
Experts on digital trade and data have warned of significant costs for SMEs and risks to protections for UK citizens if the government dilutes current data protection rules.
A recent report approved by the Prime Minister advocates scrapping regulations which could unravel the current data agreements with the EU for little or no benefit.
New trade agreements may open UK data protections to legal challenges leading specialists to call for a trade strategy to ensure British people’s data is protected.
The cross-party commission of MPs and business leaders took evidence from experts on data and digital trade today.
In a session of the cross-party UK Trade and Business Commission examining digital trade and data, expert witnesses issued stark warnings on the potential damage of diluting Britain’s data protections both by changing regulations and by signing new trade deals which expose UK rules to legal challenge.
Last week the EU ratified an adequacy agreement with the UK meaning that digital trade and the flow of data can continue for up to four years. This agreement is conditional on the UK maintaining adequate standards to those currently enforced by regulations such as GDPR.
However, a recent report from a government Taskforce led by Iain Duncan Smith and approved by the Prime Minister, proposed changing these regulations. Some have interpreted the report’s reference to ‘freeing up data for innovation’ as deregulation, increasing the potential for people’s personal data to be misused.
Referencing their joint research with UCL, Duncan McCann, Senior Researcher at the New Economics Forum said that if the government moves to dilute data protection rules at home or as part of new trade deals, it could cost small businesses thousands in additional compliance costs. He said, “We did some work on what the impacts would be of the UK losing adequacy and we very conservatively put the figure that UK companies would need to engage in at least £1.6bn worth of compliance costs that burden would fall disproportionately on the SME community a community that really can’t bear any more strain especially as we exit a pandemic.”
Adam Bowering, a Policy Advisor to European Parliament on data protection and security issues, highlighted that such a move could also damage Britain’s reputation abroad, “Scrapping data protections could further damage Britain’s international standing as the EU countries and other democratic nations move to clamp down on the misuse of personal data by big corporations.”
Nick Ashton-Hart a digital trade advisor at the International Chamber of Commerce also cast doubt on any benefit from diluting data protections saying, “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.”
The Commission heard that the UK is the third largest business to consumer market in terms of digital trade with sales worth US$266 billion (approx £192bn) per year, making it a lucrative target for other countries and corporations which can profit from legal challenges which weaken data protections in the UK.
In reference to the damage that new trade agreements might have for consumer rights, privacy and national security, Dr Emily Jones, associate professor at the University of Oxford called for the government to develop a digital strategy that ensures data protections are not subject to legal challenge as part of new trade agreements. She said,
“I would like to see us putting stronger provisions in our trade agreements to make sure we have a cast iron situation that cannot be challenged....We need a trade strategy for the UK on digital… it’s not clear to me that we’ve thought about what our priorities are and therefore how we should be approaching them.”
Professor L. Alan Winters, UK Trade Policy Observatory at the University of Sussex who co-chaired this session of the commission said,
“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 a national conversation about all this.”
Alison Williams, Global Head of Data at DunnHumby, who also chaired the session added,
“We heard today that far from being a hindrance to trade, ensuring high standards of data protection is essential to so much of our economy and there would be great costs to deregulation with little benefit. It makes very little sense to start moving backwards on protecting people’s personal information particularly as we work to remain competitive in global markets and defend the UK from cyberattacks.”
Hilary Benn MP who co-convenes the UK Trade and Business Commission said,
“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.”
Notes
The UK Trade and Business Commission was launched in April to provide independent scrutiny of the UK’s trade deals with Europe and the rest of the world. It brings together eleven MPs from all nine Westminster parties and all four nations of the UK, along with business leaders and expert economists. The Commission is co-convened by Hilary Benn MP and the Chairman of Virgin Group, Peter Norris, and the secretariat is provided by the cross-party, pro-internationalist group Best for Britain.
The session was broadcast live on YouTube and can be watched back here
The cross-party commission of MPs, trade and business leaders spoke to data and digital trade experts including:
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
The session was chaired by Alison Williams, Global Head of Data at DunnHumby, and Professor L. Alan Winters, UK Trade Policy Observatory at the University of Sussex
The Commission has previously held sessions to examine the post-Brexit issues around Northern Ireland, SMEs, the creative and financial sectors, the UK-Australia Trade deal and the potential for a veterinary agreement with the EU.
Following the session on the issues faced by small businesses, the Commission wrote a letter with recommendations to Michael Gove, Lord Frost and Liz Truss. It was subsequently reported that Lord Frost intended to meet with the Commission to discuss their proposals.
Polling by Best for Britain has found that two-thirds (66%) of small business owners say that now the UK has left the EU, we should cooperate in areas of mutual benefit such as trade, foreign policy and climate change. Further polling showed 61% of people in the UK including a majority of voters of all parties, of all ages and in all nations and regions of the UK prioritise protecting UK farmers over agreeing new trade deals.