Lack of proposals on international data flows from the Commission

Just as a good or service can face barriers to trade when it crosses national borders (such as tariffs and red tape), data can also face barriers when it moves between countries.

Historically, data-related issues have not been addressed in free trade agreements and it is high time that this is taken seriously. Following pressure, the Commission has finally produced a text to allow the inclusion of data flows in trade agreements. The proposal is welcome but not entirely convincing.

It emphasizes no guarantee that the privacy of EU citizens will be protected, the Data Protection Regulation is left completely open to criticism from the negotiating party. The loose wording opens up for discussion and risks leaving the contracting parties with two different sets of rules on privacy. This would counteract a more free flow of data. Giving others room to criticize and undermine EU legislation immediately creates a risk of providing more different conditions for data transfers in countries outside the Union.

In response to this, IT&Telecom together with the Confederation of Swedish Enterprise, Teknikföretagen, Almega, the Stockholm Chamber of Commerce and ICC Sweden have sent a letter to the Bulgarian Presidency. The letter criticizes parts of the Commission's proposal for being too weak and insufficient.

In addition to the discussion, we see a rise in protectionism among countries such as China, India, Russia and Brazil that affects the negotiating situation for the EU, and not least for companies wishing to make cross-border data transfers outside the Union. We believe that the proposal does not necessarily oppose the internationally growing protectionism, but rather welcomes and opens up for it, which is very problematic. It goes without saying that protectionism is not the way to achieve smooth international data flows, and it would be a shame if the EU were to move in the direction proposed.

Almost all companies with a digital connection are born globals today, they all compete in the global market. Free data flows and the conditions for them are crucial for companies to keep up. When you compete globally, international regulations help enormously, international standards provide a level playing field for companies to compete. Unfortunately, a proposal like this leaves room for fragmented and varied free trade agreements between the EU and third parties, which is not sustainable for our companies, either today or in the long term.