Resolving the Conflict Between Trade and Data Protection Law

Abstract

The next decade will see increasing conflict between data privacy laws and international trade law. Governments are already concerned that privacy will be lost amid global data flows and have responded by enacting regulatory measures that might impede modern trade. While the European Union’s findings of ‘adequacy’ offer a potentially trade-friendly solution to cross-border data flows, fewer than a dozen countries have been found adequate. In addition, more than sixty countries have enacted laws where they too evaluate the adequacy of foreign privacy laws. This splintering of data privacy law complicates global trade as more nations review and potentially restrict outbound data flows. New solutions are needed to ensure the benefits of trade while safeguarding privacy. This paper argues that a broad international agreement is needed that sets minimum standards, develops common regulatory language, and creates binding commitments in the context of data privacy and trade law. Keywords: trade law, data protection law, World Trade Organization, adequacy finding, General Agreement on Trade in Services (GATS)