{"id":6623,"date":"2017-10-24T07:52:08","date_gmt":"2017-10-24T14:52:08","guid":{"rendered":"https:\/\/www.privateinternetaccess.com\/blog\/?p=6623"},"modified":"2021-08-03T01:00:29","modified_gmt":"2021-08-03T08:00:29","slug":"privacy-battle-cross-border-data-flows-just-went-notch","status":"publish","type":"post","link":"https:\/\/www.privateinternetaccess.com\/blog\/privacy-battle-cross-border-data-flows-just-went-notch\/","title":{"rendered":"The privacy battle over cross-border data flows just went up a notch"},"content":{"rendered":"

Until the election of Donald Trump last year, multilateral trade deals were a key element of global politics, and affected many aspects of the digital world. Indeed, as the Internet moves ever-closer to the heart of commercial activity, so the importance of digital business has increased, and trade deals have become an important forum for governments to lay down global rules in the online world.<\/p>\n

One example is the Trans-Pacific Partnership<\/a> (TPP), which aimed to bring together 12 countries around the Pacific in a wide-ranging agreement about how trade would be conducted. It included a number of measures affecting digital trade<\/a>, among them \u201cenabling cross-border data flows\u201d. Although technically such flows are straightforward \u2013 it\u2019s what the Internet does \u2013 problems can arise because of privacy considerations. Jurisdictions with high levels of privacy protection are often unwilling for personal data to flow to other countries where protections may be lower.<\/p>\n

The US withdrew from TPP as part of a general re-evaluation of trade deals by the new administration. The status of two other major trade negotiations involving the US, both which include data flows, is currently unclear. One is the Transatlantic Trade and Investment Partnership. The most recent report<\/a> from the US Trade Representative, published in January this year, notes: \u201cWe still have significant work to do to resolve our differences in several important areas of the negotiations\u201d. One of those is \u201chow to structure commitments on data flows that will reinforce the essential electronic commerce and digital infrastructure of our economic relationship while respecting legitimate concerns about protecting privacy\u201d.<\/p>\n

The other major deal is the Trade In Services Agreement<\/a> (TISA). This, too, is currently in limbo, waiting for a decision from the US administration about whether it will continue to participate or withdraw, as it has done with TPP. An article about TISA written just before the US election by the Electronic Frontier Foundation (EFF) pointed out that the main stumbling block<\/a> to completing the deal was cross-border data flows. Major differences existed between the US and EU positions:<\/p>\n

\u201cThe fear on Europe\u2019s side is that \u201cfree flow of data\u201d is code for \u201cavoiding Europe\u2019s strong data protection regulations by treating them as trade barrier.\u201d Two weeks ago, former Vice President of the European Commission Viviane Reding succinctly expressed this in a tweet, \u201cNothing in trade agreements should prevent the EU from maintaining, applying and reinforcing its data protection regulation.\u201d European civil society groups have expressed themselves even more strongly in a joint letter that has been released today, with EFF\u2019s support\u201d<\/p><\/blockquote>\n

The letter<\/a> from the civil society groups was unequivocal in its demands:<\/p>\n

\u201dFundamental rights must be respected and not negotiated upon. Therefore, data flows \u2013 which refer to transfers of individuals\u2019 personal data \u2013 must not be part of trade agreements. Trade negotiations are not suitable for shaping rules affecting fundamental rights and the rule of law in a democratic society.\u201c<\/p><\/blockquote>\n

Since then, the TISA negotiations have ground to a halt, but the debate about whether cross-border data flows should form part of international trade deals has continued, particularly in the EU. In May, a letter signed by 15 of the European Union\u2019s Member States wrote to the European Commission urging it to include data flows<\/a> in its trade deals:<\/p>\n

\u201cData is becoming the fuel of the global economy. 15 years ago, data flows barely existed. Now data is everywhere: from the equipment in a modern factory to the fridge and lightning in ordinary housing and from cars on the highway to the apps on a mobile phone. Data flows have increased by 45 times since the beginning of this century creating EUR 4.5 billion extra economic growth for our citizens and entrepreneurs. It now generates more economic growth than trade in goods. Therefore, we urge the Commission to rapidly present an ambitious formal text proposal for commitments on data flows in trade agreements to help our entrepreneurs to benefit from the opportunities of the Internet.\u201d<\/p><\/blockquote>\n

However, it is significant that the two largest EU Member States \u2013 Germany and France \u2013 did not sign the letter. Their absence reflects concerns by many citizens in those countries about transferring data out of the EU. Edward Snowden\u2019s revelations of massive surveillance by the NSA \u2013 and the UK\u2019s GCHQ \u2013 as data crosses the Atlantic have heightened fears that once personal data is transferred abroad, there are few constraints on what might be done with it. Although spying also takes place within the EU, there seems to be a view that the closer to home that personal data remains, the greater the control people retain over it.<\/p>\n

Germany and France are not the only powerful actors in Europe that are wary about allowing unrestricted cross-border data flows because of worries about privacy. Another is an obscure but extremely influential EU official called Martin Selmayr. As Wikipedia describes him<\/a>, he is:<\/p>\n

\u201ca German lawyer and a European civil servant, who serves as head of cabinet to the President of the European Commission Jean-Claude Juncker. Selmayr is a close confidant of Juncker and was Juncker\u2019s campaign director and head of the transition team before Juncker took office as president. Selmayr has been widely described as the most influential civil servant of the European Commission.\u201d<\/p><\/blockquote>\n

Selmayr has just used that influence in the debate about data flows<\/a>, as reported here by Politico.eu:<\/p>\n

\u201cThe powerful chief of staff to President Jean-Claude Juncker this month blocked a plan supported by advocates of digital trade in Brussels and EU capitals to include data in future trade agreements.<\/p>\n

\u201cFor the EU, privacy is not a commodity to be traded. Data protection is a fundamental right in the EU,\u201d Commission spokesperson Mina Andreeva said, responding to questions on Selmayr\u2019s views on data in trade.\u201d<\/p><\/blockquote>\n

That\u2019s not likely to be the end of the matter. Major US companies have too much at stake here to allow Selmayr\u2019s veto to remain unchallenged. The issue is not about whether they will be forced to set up large-scale data centers in the EU to handle the personal data of EU citizens \u2013 that wouldn\u2019t be such a big problem in practice. But they know that what happens in the EU will have a big impact elsewhere. Their fear is that other countries will follow the EU in introducing strong privacy protections and limiting cross-border flows of personal data. Both would adversely affect their business models, which are based on the unrestricted aggregation and analysis of huge quantities of personal data, and using that information to sell highly-targeted ads<\/a>.<\/p>\n

Featured image by Tony Webster<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Until the election of Donald Trump last year, multilateral trade deals were a key element of global politics, and affected many aspects of the digital world. Indeed, as the Internet moves ever-closer to the heart of commercial activity, so the importance of digital business has increased, and trade deals have become an important forum for … Continue reading “The privacy battle over cross-border data flows just went up a notch”<\/span><\/a><\/p>\n","protected":false},"author":20,"featured_media":6624,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_stopmodifiedupdate":true,"_modified_date":"","footnotes":""},"categories":[1,130,1941],"tags":[200,201,202],"class_list":["post-6623","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-governments","category-surveillance","tag-eu","tag-tpp","tag-ttip"],"yoast_head":"\nThe privacy battle over cross-border data flows just went up a notch<\/title>\n<meta name=\"description\" content=\"Until the election of Donald Trump last year, multilateral trade deals were a key element of global 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He started covering the business use of the Internet in 1994, and wrote the first mainstream feature about Linux, which appeared in Wired in August 1997. His book, \"Rebel Code,\" is the first and only detailed history of the rise of open source, while his subsequent work, \"The Digital Code of Life,\" explores bioinformatics - the intersection of computing with genomics.","sameAs":["http:\/\/opendotdotdot.blogspot.com\/","https:\/\/www.linkedin.com\/in\/glynmoody\/","https:\/\/x.com\/http:\/\/twitter.com\/glynmoody"],"url":"https:\/\/www.privateinternetaccess.com\/blog\/author\/glynmoody\/"}]}},"_links":{"self":[{"href":"https:\/\/www.privateinternetaccess.com\/blog\/wp-json\/wp\/v2\/posts\/6623","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.privateinternetaccess.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.privateinternetaccess.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.privateinternetaccess.com\/blog\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"https:\/\/www.privateinternetaccess.com\/blog\/wp-json\/wp\/v2\/comments?post=6623"}],"version-history":[{"count":12,"href":"https:\/\/www.privateinternetaccess.com\/blog\/wp-json\/wp\/v2\/posts\/6623\/revisions"}],"predecessor-version":[{"id":30513,"href":"https:\/\/www.privateinternetaccess.com\/blog\/wp-json\/wp\/v2\/posts\/6623\/revisions\/30513"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.privateinternetaccess.com\/blog\/wp-json\/wp\/v2\/media\/6624"}],"wp:attachment":[{"href":"https:\/\/www.privateinternetaccess.com\/blog\/wp-json\/wp\/v2\/media?parent=6623"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.privateinternetaccess.com\/blog\/wp-json\/wp\/v2\/categories?post=6623"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.privateinternetaccess.com\/blog\/wp-json\/wp\/v2\/tags?post=6623"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}