Digital Trade Policy
Intel public policy: How Intel promotes innovation worldwide
Intel is working relentlessly to unleash the potential of data, leading to more capable and efficient networks and pervasive connected smart devices. Moore’s Law set the pace for the digital revolution and continues to inspire us today. Data is not only a means of production; it is also an asset that can itself be traded and a means through which global supply chains are organized and services delivered. It also underpins physical trade by enabling the implementation of trade facilitation. Data is also at the core of new and rapidly growing service supply models such as cloud computing, the Internet of Things (IoT) and Artificial Intelligence (AI). We believe that data is dramatically shaping the future of all humankind and driving innovation at a record pace.
The COVID-19 pandemic has led to spikes in digital trade, both business-to-consumer and business-to-business. The increases reflected a surge in online social media use, online shopping, teleconferencing and streaming of videos and movies.
The World Trade Organization (WTO) noted that the pandemic has underscored the importance of digital technologies in general, but also vulnerabilities, including the digital divide and trade barriers across the globe.
In light of COVID-19, the need for corporations to take a collaborative approach to solve the world’s greatest challenges has never been more apparent, especially true for technology companies. Data and information play a crucial role in helping to track, diagnose and treat this pandemic and will continue to do so as we look to get ahead of future global challenges.
Key Issues
Barriers to digital trade exist and, in some cases, are growing
Whether due to outdated rules, new forms of protectionism, or as domestic policymakers seek to address novel governance questions without international collaboration. Companies must navigate challenges from last-mile delivery logistics to secure cross-border payments. New data localization policies and other hurdles are emerging for international digital trade. Disruptive effects on business and the workforce will need to be navigated, while questions on taxing global digital activities are ongoing.
Continuing the moratorium on customs duties on electronic transmissions
Whether due to outdated rules, new forms of protectionism, or as domestic policymakers seek to address novel governance questions without international collaboration. Companies must navigate challenges from last-mile delivery logistics to secure cross-border payments. New data localization policies and other hurdles are emerging for international digital trade. Disruptive effects on business and the workforce will need to be navigated, while questions on taxing global digital activities are ongoing.
Data must flow freely across borders
To ensure a stable and robust global supply chain that benefits traders and consumers in every geography. Current WTO negotiations provide an opportunity to reach a global agreement on provisions that meaningfully combat barriers to data flows, including those affecting financial data. Those provisions should not challenge regulatory frameworks that allow for the transparent and non-discriminatory transfer of data across borders.
There needs to be a prohibition on requirements to localize the storage and processing of data
Companies should have the opportunity to locate data storage and processing centers where it makes the most technical and commercial sense. However, forced local storage and processing of data minimize companies’ ability to select the best location. Instead, these requirements significantly increase the cost of doing business without improving (and in some cases jeopardizing) data security and service reliability.
Companies should not be required to disclose source code, algorithms or encryption keys
As a requirement for market access or entry. Innovation depends on the ability to develop and use proprietary software and to secure products and systems with private encryption keys. Some economies have unfairly advantaged their domestic industry by demanding that foreign companies transfer source code, algorithms or encryption keys as a condition for doing business in their territory. In other scenarios, concerns around government access to encrypted data have led to requirements that firms build “back doors” to digital products that can put intellectual property at risk.
@IntelPolicy
Ideas and perspectives promoting a thriving innovation economy from Intel’s public policy team.