[x-pubpol] U S Congressmen Urge Protection of Data Flows in Trade Negotiations

[Joly MacFie]

http://energycommerce.house.gov/press-release/terry-and-welch-urge-protection-data-flows-trade-negotiations



*FOR IMMEDIATE RELEASE*October 24, 2014


*CONTACT: Press Office*(202) 226-4972
 *Terry and Welch Urge Protection of Data Flows in Trade Negotiations  *

 *Bipartisan Effort to Protect Job-Creating Economic Growth*

 *WASHINGTON, DC* – Commerce, Manufacturing, and Trade Subcommittee
Chairman Lee Terry (R-NE) and Rep. Peter Welch (D-VT) today called for the
protection of cross-border data flows in trade agreements to ensure the
continued growth of e-commerce. Terry’s subcommittee recently held a hearing
<http://links.govdelivery.com:80/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTQxMDI0LjM3NDM5MDAxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE0MTAyNC4zNzQzOTAwMSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE2OTc4NzM1JmVtYWlsaWQ9am9seUBwdW5rY2FzdC5jb20mdXNlcmlkPWpvbHlAcHVua2Nhc3QuY29tJmZsPSZleHRyYT1NdWx0aXZhcmlhdGVJZD0mJiY=&&&100&&&http://energycommerce.house.gov/hearing/%E2%80%9Ccross-border-data-flows-could-foreign-protectionism-hurt-us-jobs%E2%80%9D>
highlighting the importance of cross-border data flows to the global
economy and the harmful impacts of restrictive and protectionist data
policies. Terry and Welch wrote to Secretary of Commerce Penny Pritzker and
U.S. Trade Representative Michael Froman urging negotiators of ongoing
trade agreements to steadfastly support the free flow of data across
international borders.

The members wrote, “In particular, with TPP chief negotiators set to meet
in Australia this weekend and with meetings for the other trade agreements
ongoing, this is a critical time for the U.S. to stand firm. Trade
agreements must acknowledge and support the growth of international trade
through e-commerce, and cross-border data flows are the backbone of this
growth. We urge you to secure enforceable commitments to free and open
cross-border data flows around the world, for the sake of U.S. businesses
and for a prosperous global economy.”

For a full copy of the letter, click HERE
<http://links.govdelivery.com:80/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTQxMDI0LjM3NDM5MDAxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE0MTAyNC4zNzQzOTAwMSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE2OTc4NzM1JmVtYWlsaWQ9am9seUBwdW5rY2FzdC5jb20mdXNlcmlkPWpvbHlAcHVua2Nhc3QuY29tJmZsPSZleHRyYT1NdWx0aXZhcmlhdGVJZD0mJiY=&&&101&&&http://energycommerce.house.gov/sites/republicans.energycommerce.house.gov/files/letters/102414DOCUSTRLetter.pdf>
.

Terry and Welch also authored an op-ed published today on CNBC
<http://links.govdelivery.com:80/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTQxMDI0LjM3NDM5MDAxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE0MTAyNC4zNzQzOTAwMSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE2OTc4NzM1JmVtYWlsaWQ9am9seUBwdW5rY2FzdC5jb20mdXNlcmlkPWpvbHlAcHVua2Nhc3QuY29tJmZsPSZleHRyYT1NdWx0aXZhcmlhdGVJZD0mJiY=&&&102&&&http://www.cnbc.com/id/102119451>
with the same message, asserting, “Every area of U.S. business is impacted
and, in today’s global economy, restrictions anywhere in the world can cost
jobs in Omaha, Burlington, or any other community. The approaching
negotiations present an opportunity for our nation to defend e-commerce as
we know it and ensure continued economic growth fueled by the free flow of
commercial data around the world.”
 [image: CNBC]
<http://links.govdelivery.com:80/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTQxMDI0LjM3NDM5MDAxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE0MTAyNC4zNzQzOTAwMSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE2OTc4NzM1JmVtYWlsaWQ9am9seUBwdW5rY2FzdC5jb20mdXNlcmlkPWpvbHlAcHVua2Nhc3QuY29tJmZsPSZleHRyYT1NdWx0aXZhcmlhdGVJZD0mJiY=&&&103&&&http://www.cnbc.com/id/102119451>*October
24, 2014*US needs to defend e-commerce as we know it*By Rep. Lee Terry
(R-NE) and Rep. Peter Welch (D-VT)*

We live in an age where a savvy entrepreneur in Burlington or Omaha can
create good jobs at a good profit by marketing a new idea or product
through the Internet to a worldwide audience. Through an uninhibited flow
of data, the Internet has truly empowered small and large businesses alike
to fully participate in the global economy.

But what if this worldwide exchange of data was disrupted due to
protectionist trade policies of foreign governments? What would happen to
those small businesses in Vermont and Nebraska that created a profitable
business and good jobs by marketing and selling through the Internet?
Unfortunately, these are not academic questions.

Several countries, including Brazil, China, Mexico, Russia, South Korea,
Switzerland, Turkey, and Vietnam, have already enacted or are considering
policies that would limit the flow of Internet traffic in and out of their
borders. Some of these efforts are regulatory and require a company to jump
through onerous hoops before sending data overseas. Other policies are more
protectionist and would require companies to build facilities within a
country's borders, changing the basic flow of the Internet.

Proponents believe such a requirement would create jobs in that country but
this logic is faulty in more ways than one. The Internet is a two-way
network and raising costs harms all parties by severely restricting its
efficiencies and reach. A recent International Trade Commission report
estimated that our GDP could increase from $16.7 billion to $41.4 billion
if barriers to digital trade were removed. This is the type of job-creating
economic growth we cannot afford to ignore.

The implications for American businesses, big and small, are enormous.

Data over the Internet fuels basic business functions such as tracking
goods through the supply chain, internal company emails, and international
personnel management. Businesses are able to harness economies of scale and
consumers benefit from the efficiencies created by cross-border data flows.
And these advantages are particularly beneficial to small businesses,
reducing costs and granting access to larger markets. Forced localization
and other data flow restrictions impose a real cost that would be passed on
to the consumer.

Each year, over $8 trillion in international commerce is conducted over the
Internet. Companies of all sizes, not just the Googles and PayPals of the
marketplace, spend $2 trillion annually on information technologies. One
report estimates that 75 percent of e-commerce benefits traditional
industries.

We should be clear that we are focused only on removing barriers to the
commercial use of data. Very legitimate concerns have been raised about
privacy and the protection of personal data, including when governments can
access that data. Those are legitimate issues that must be promptly
addressed.

But in the context of trade agreements, commercial data cannot stop at
borders without seriously stunting the potential of the Internet to create
jobs and grow our economy.

This weekend in Sydney, at a meeting of negotiators on the Trans-Pacific
Partnership, there will be an opportunity for the United States government
to take a strong stand in support of the free flow of data across borders.
Other upcoming forums to plant this flag include negotiations on the
Transatlantic Trade and Investment Partnership, Trade in Services
Agreement, and United States-European Union Safe Harbor.

In all these meetings, American trade representatives must be full-throated
in their support of the commercial benefits of cross-border data flows.

We are calling on them to be firm in requiring commitments to cross-border
data flows and ensuring strong enforcement mechanisms. Every area of U.S.
business is impacted and, in today's global economy, restrictions anywhere
in the world can cost jobs in Omaha, Burlington, or any other community.
The approaching negotiations present an opportunity for our nation to
defend e-commerce as we know it and ensure continued economic growth fueled
by the free flow of commercial data around the world.

*Commentary by Reps. Lee Terry and Peter Welch. Terry represents Nebraska's
2nd District and is chairman of the House Energy and Commerce Subcommittee
on Commerce, Manufacturing, and Trade. Follow him on Twitter @LeeTerryNE.
Welch represents Vermont's at-large Congressional District and sits on the
Energy and Commerce and the Oversight and Government Reform committees.
Follow him on Twitter @PeterWelch. *

*Read the article online HERE
<http://links.govdelivery.com:80/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTQxMDI0LjM3NDM5MDAxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE0MTAyNC4zNzQzOTAwMSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE2OTc4NzM1JmVtYWlsaWQ9am9seUBwdW5rY2FzdC5jb20mdXNlcmlkPWpvbHlAcHVua2Nhc3QuY29tJmZsPSZleHRyYT1NdWx0aXZhcmlhdGVJZD0mJiY=&&&104&&&http://www.cnbc.com/id/102119451>.*

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