Digital trade has grown at an unprecedented pace due to advancements in information technologies. The global COVID-19 pandemic further highlighted the importance of international digital transactions and created momentum for the negotiation of digital rules at the World Trade Organization (WTO). Large technology companies rely on free access to data and cross-border data flows, making them influential in shaping digital rule-making at bilateral, regional, and multilateral levels. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is currently the leading regional trade agreement (RTA) on digital trade, which aligns with the market-based approach. Australia, Singapore, and Japan, the main parties to the CPTPP, now play a key role in WTO digital negotiations. Their proposals, largely based on the CPTPP’s context, aim to liberalize data flows. However, many WTO members remain cautious of this approach, considering it may compromise regulatory autonomy and essential common interests, such as data sovereignty, privacy, and consumer protection.Though the CPTPP’s e-commerce chapter provides a comprehensive benchmark, fundamental problems with establishing cross-border digital rules remain unsolved at the WTO. This article will examine the limits of, and obstacles to, the realization of the CPTPP approach within the trade system, and propose a preliminary and progressive arrangement for global data governance.
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