Privacy and Cybersecurity in Digital Trade: The Challenge of Cross Border Data Flows

Abstract

We are living in a data driven economy and it is transforming industries and global trade. From fintech to automation of vehicles, to the services that companies rely on for data storage and payroll, at the heart of this is data – or information – and in particular, the flow of information. From a trade perspective, the global nature of the digital economy means the cross border data flows is a pressing trade issue that entails navigating seemingly incompatible domestic privacy and cybersecurity laws. This paper maps various private sector privacy and cybersecurity laws with the goal of deepening understanding of the various models of liability in different jurisdictions and how they influence digital trade negotiations. Part 1 provides an overview of the privacy and governance challenges of data flows. Part 2 examines three data protection and privacy regimes, the United States, Europe and Canada. Part 3 details common themes in recent trade agreements on digital privacy and casts an eye to the future, making recommendations rooted in the internet governance narrative.

Keywords: Privacy, Cybersecurity, International Trade, Internet Governance

JEL Classification: K33