September 10, 2020

WASHINGTON – A coalition of groups representing the global technology industry in the U.S. and Brazil, led by ITI, called on both countries to ensure that specific digital trade commitments, including those relating to data flows, data privacy, cybersecurity, and taxation, are included should the two countries further enhance collaboration under the U.S.-Brazil Agreement on Trade and Economic Cooperation (ATEC).

“At a time when barriers to digital trade are proliferating and a wide range of economies – including both the United States and Brazil – are engaged in the negotiation of digital trade commitments at the World Trade Organization (WTO), the need for common agreement on strong digital trade disciplines in this bilateral context is more urgent than ever,” the associations wrote in a letter sent today to U.S. and Brazilian trade officials. “Moreover, the optimization of digital policy will further enable robust, collaborative responses to the current pandemic. As your teams move forward in their discussions, we strongly encourage the development of strong, rules-based commitments necessary to deepen the U.S.-Brazil bilateral trade and investment relationship and ensure its resilience in the modern, data-driven economy.”

In the letter, sent to U.S. Trade Representative Robert Lighthizer and Brazilian Foreign Affairs Minister Ernesto Araujo, the associations called on both countries to incorporate foundational principles of digital trade, including those that:

  • Enable cross-border data flows, embrace cloud technologies, and avoid data localization requirements;
  • Proscribe tariffs and customs formalities on electronic transmissions and enshrine non-discriminatory treatment of digital products;
  • Ensure protection of personal data, taking into account best international practices for privacy and interoperability of regulatory frameworks;
  • Strengthen and expand good regulatory practices for digital trade, in accordance with OECD principles, as a means to promote new technologies like Artificial Intelligence (AI), machine learning and additive manufacturing;
  • Promote governmental cooperation and risk-based approaches to cybersecurity;
  • Proscribe requirements to disclose source code, algorithms, and proprietary information relating to cryptography;
  • Establish limitations to liability for users and suppliers of interactive computer services to support and safeguard digital supply chains;
  • Encourage a multilateral, consensus-based solution to tax challenges arising from the digitalization of the economy and refrain from adopting unilateral digital taxation measures that contravene international taxation principles;
  • Complement and give effect to rules-based digital commitments through market access liberalization for services and ICT goods;
  • Facilitate access to and use of open public data in accessible, machine-readable formats to spur adoption of AI and other emerging technologies; and
  • Enshrine acceptance of electronic contracts, signatures and authentication.

Read the full letter here.

Public Policy Tags: Trade & Investment