Page 22 - THE SOUTH CHINA BUSINESS JOURNAL
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C. TODAY new markets that much harder for this trade-
dependent sector.
can be especially detrimental for small businesses.
Countries whose policymakers prioritize strong These companies use data in transactions,
digital trade rules and infrastructure will have an advertising, R&D, harvesting, and climate
advantage as more and more consumers seek to monitoring, among other areas. Furthermore,
use digital payments and as smaller firms look to digital solutions are key to achieving progress on
expand their e-commerce capabilities. environmental sustainability goals and increased
crop yields. The pursuance of high-standard digital
Strong digital trade rules can also help improve trade rules will facilitate U.S. agricultural exports to
organizations’ overall cybersecurity posture. new levels.
When governments enact data localization and
other measures restricting the movement of data Biotech companies’ agricultural business will
across borders, they make it more difficult and be negatively impacted if the U.S. abandons
costly for companies to secure their data from internationally recognized cross-border data flow
potential cyberattacks. principles, especially when it comes to sharing
digital data with designated research centers for
Data security is critical for insurance companies, plant genotyping and phenotyping.
in particular, given this sector deals with large
amounts of sensitive personal and financial data to Cumulatively, these impacts will increase costs
do business. Unfortunately, governments around for biotech companies’ agricultural businesses
the world continue to enact digital trade barriers and depress the availability of these digital tools
in this space, including preventing insurers from and services in different parts of the world. This
transferring data outside of the country or placing could also potentially become a barrier to access
restrictions on the use of cloud services. While to smallholder farmers, who cultivate crops on a
some governments argue that these measures limited scale in areas that could most benefit from
will make data more secure, such restrictions can more regenerative approaches to agriculture.
actually lead to the opposite result and undermine
the very same policy goals that governments set Logistics & Transportation
out to achieve in terms of protecting the data of
their citizens. That’s why it’s imperative that today’s Transportation companies are also beneficiaries
trade rules include prohibitions on data localization of strong digital trade rules that ensure data can
and similar requirements for insurers and the rest of flow freely across borders, unimpeded by forced
the financial services sector. localization rules.
Autos Global supply chain constraints during the Covid-19
pandemic illustrated the need for increased
Retreating from strong data flow standards will transparency within supply chains. The ability
hinder how auto companies transfer data between of companies in the logistics sector to track
domestic headquarters and their global affiliates. upstream and downstream suppliers and assess
Whether it’s data on customers, employees, real-time data on products’ locations was critical
or vehicle safety, the absence of strong digital in getting goods to market amidst congestion at
trade invites new restrictions and impedes firms’ ports. Companies were then able to provide their
ability to move data across borders. This would customers with this data globally based on the
undoubtedly increase costs and stifle innovation system of rules that allowed them to send data
and R&D by making it more difficult to capture freely from one location to another.
data aimed at making vehicles safer, smarter, and
more sustainable. Access to digital services is a key driver of supply
chain diversification and resiliency, with digitally-
Additionally, without strong digital trade enabled firms twice as likely to export goods as
commitments, a number of large emerging markets non-digitally-enabled firms.
could impose data localization requirements
that force companies to store data generated or Jobs Depend on Digital Trade
collected in a country on servers located within that
country. The added cost and inefficiency would be USTR’s reversal of digital trade rules threatens
baked in without advancing privacy, cyber, or other new costs, reduced innovation, depressed
policy goals. investment, and suppressed hiring for a wide
variety of American sectors and companies. Millions
Agriculture of American jobs, U.S. exports, and the nation’s
competitiveness depend on digital trade. The Biden
Agriculture companies rely on strong digital trade administration needs to correct course — before it’s
rules, given their focus on digital logistics and too late.
e-commerce technologies when exporting goods.
Paring these rules down will make exporting to
19 AMCHAM SOUTH CHINA
dependent sector.
can be especially detrimental for small businesses.
Countries whose policymakers prioritize strong These companies use data in transactions,
digital trade rules and infrastructure will have an advertising, R&D, harvesting, and climate
advantage as more and more consumers seek to monitoring, among other areas. Furthermore,
use digital payments and as smaller firms look to digital solutions are key to achieving progress on
expand their e-commerce capabilities. environmental sustainability goals and increased
crop yields. The pursuance of high-standard digital
Strong digital trade rules can also help improve trade rules will facilitate U.S. agricultural exports to
organizations’ overall cybersecurity posture. new levels.
When governments enact data localization and
other measures restricting the movement of data Biotech companies’ agricultural business will
across borders, they make it more difficult and be negatively impacted if the U.S. abandons
costly for companies to secure their data from internationally recognized cross-border data flow
potential cyberattacks. principles, especially when it comes to sharing
digital data with designated research centers for
Data security is critical for insurance companies, plant genotyping and phenotyping.
in particular, given this sector deals with large
amounts of sensitive personal and financial data to Cumulatively, these impacts will increase costs
do business. Unfortunately, governments around for biotech companies’ agricultural businesses
the world continue to enact digital trade barriers and depress the availability of these digital tools
in this space, including preventing insurers from and services in different parts of the world. This
transferring data outside of the country or placing could also potentially become a barrier to access
restrictions on the use of cloud services. While to smallholder farmers, who cultivate crops on a
some governments argue that these measures limited scale in areas that could most benefit from
will make data more secure, such restrictions can more regenerative approaches to agriculture.
actually lead to the opposite result and undermine
the very same policy goals that governments set Logistics & Transportation
out to achieve in terms of protecting the data of
their citizens. That’s why it’s imperative that today’s Transportation companies are also beneficiaries
trade rules include prohibitions on data localization of strong digital trade rules that ensure data can
and similar requirements for insurers and the rest of flow freely across borders, unimpeded by forced
the financial services sector. localization rules.
Autos Global supply chain constraints during the Covid-19
pandemic illustrated the need for increased
Retreating from strong data flow standards will transparency within supply chains. The ability
hinder how auto companies transfer data between of companies in the logistics sector to track
domestic headquarters and their global affiliates. upstream and downstream suppliers and assess
Whether it’s data on customers, employees, real-time data on products’ locations was critical
or vehicle safety, the absence of strong digital in getting goods to market amidst congestion at
trade invites new restrictions and impedes firms’ ports. Companies were then able to provide their
ability to move data across borders. This would customers with this data globally based on the
undoubtedly increase costs and stifle innovation system of rules that allowed them to send data
and R&D by making it more difficult to capture freely from one location to another.
data aimed at making vehicles safer, smarter, and
more sustainable. Access to digital services is a key driver of supply
chain diversification and resiliency, with digitally-
Additionally, without strong digital trade enabled firms twice as likely to export goods as
commitments, a number of large emerging markets non-digitally-enabled firms.
could impose data localization requirements
that force companies to store data generated or Jobs Depend on Digital Trade
collected in a country on servers located within that
country. The added cost and inefficiency would be USTR’s reversal of digital trade rules threatens
baked in without advancing privacy, cyber, or other new costs, reduced innovation, depressed
policy goals. investment, and suppressed hiring for a wide
variety of American sectors and companies. Millions
Agriculture of American jobs, U.S. exports, and the nation’s
competitiveness depend on digital trade. The Biden
Agriculture companies rely on strong digital trade administration needs to correct course — before it’s
rules, given their focus on digital logistics and too late.
e-commerce technologies when exporting goods.
Paring these rules down will make exporting to
19 AMCHAM SOUTH CHINA
