Public Submission, The Future of Digital Trade Rules Consultation (DFAT)

Abstract

This submission provides our views on three areas of digital trade relevant to international trade agreements: (1) Addressing data-related trade barriers: Given the central role of cross-border data flows in the global economy, we are of the view that future digital trade agreements must contain provisions allowing free cross-border data flows across all service sectors and also prohibiting data localisation. These provisions must be subject to clear exceptions allowing data restrictions or localisation requirements for achieving legitimate domestic regulatory objectives, and drawing carve-outs for highly sensitive sectors, as and when necessary. Further, trade rules on data flows must be complemented by other disciplines that promote digital trust. For instance, all parties to digital trade agreements must adopt basic frameworks on data protection and privacy consistent with recognised international standards and encourage the use of mutual recognition mechanisms (eg, privacy trustmarks) for enabling cross-border data flows. Additionally, digital trade agreements must require all parties to adopt a framework on online consumer protection, with reference to relevant international frameworks developed by the UN, OECD, and other transnational bodies. (2) Dealing with cybersecurity and national security concerns: In our view, future digital trade agreements must contain stronger disciplines on international cybersecurity cooperation and provide greater recognition to multi-stakeholder and market-driven cybersecurity standards to facilitate the widespread adoption of competitive and robust standards on cybersecurity. Instead of unilaterally imposing highly restrictive cybersecurity measures, especially on the grounds of national security, countries must engage meaningfully and transparently in diplomatic and policy dialogues outside trade institutions to foster stronger international consensus on dealing with conflicts over cybersecurity-related issues. (3) Digital development and inclusion: Digital development and inclusion is essential to promote digital trade within Australia as well as regionally and globally. Therefore, in our view, in addition to promoting digital development and inclusion domestically to support and enable digitally excluded communities, Australia must take a stronger leadership role in promoting digital development and inclusion in the Asia-Pacific by providing greater technical assistance and capacity building support to digitally less developed countries. In pursuing reforms of digital trade rules at the WTO and through FTAs, we believe that Australia can benefit by adopting a three-pronged strategy: (1) pushing for forward-looking rules on digital trade that are principles-based and technology neutral; (2) engaging proactively in dialogues on global cybersecurity and privacy norms, standards, and best practices in relevant international and multi-stakeholder bodies that can complement digital trade rules; and (3) ensuring that digital trade rules support an interoperable and unfragmented internet as this is an essential requirement for the sustainable growth of digital trade.