[CTC] Business groups unite to decry shift away from WTO e-commerce proposals

[Arthur Stamoulis]

Business groups unite to decry shift away from WTO e-commerce proposals
Inside US Trade, 11/7/23
 
A broad coalition of more than 40 major business groups is urging the Biden administration to reverse course following its decision to withdraw support for key digital trade proposals in World Trade Organization talks on e-commerce, arguing the U.S. must continue to be a “global leader” on the issue to be able to push back on authoritarian regimes.
 
In a Nov. 7 letter <https://www.uschamber.com/international/trade-agreements/u-s-chamber-and-other-associations-letter-to-nsc-nec-on-digital-trade#:~:text=We%20further%20implore%20you%20take,on%20the%20regulatory%20overreach%20of> to National Security Adviser Jake Sullivan and National Economic Council Director Lael Brainard, the groups highlight their “profound concern and disappointment” in the wake of the decision, announced by the Office of the U.S. Trade Representative last month, to withdraw U.S. support for proposed provisions <https://insidetrade.com/node/178191> related to data flows, data localization and source code. The letter also was sent to USTR Katherine Tai, Commerce Secretary Gina Raimondo, Secretary of State Antony Blinken and Treasury Secretary Janet Yellen, along with congressional leaders and members of the Senate Finance and House Ways & Means committees.
 
“[T]he undersigned organizations urge the Administration to reverse this harmful decision,” the groups said. “We further implore you take steps that would return the U.S. to its traditional role as the global leader in writing rules for the rules-based trading system that benefit American workers and business, align with American priorities and values, and will empower the government to push back on the regulatory overreach of authoritarian regimes.”
 
The letter is signed by large business groups like the U.S. Chamber of Commerce, the National Foreign Trade Council, the U.S. Council for International Business and Business Roundtable, as well as a broad swath of industry trade associations like the Coalition of Services Industries, the National Retail Federation, the Pharmaceutical Research and Manufacturers of America and the American Apparel and Footwear Association, among many others.
 
USTR at the time said the move would “provide enough policy space” for ongoing debates in the U.S. and elsewhere on “approaches to data and source code, and the impact of trade rules in these areas.”
 
According to a group of progressive lawmakers on Tuesday, USTR also has suspended negotiations <https://insidetrade.com/node/178313> on these issues in the Indo-Pacific Economic Framework for Prosperity talks.
 
The lawmakers, in their Tuesday letter, praised the shift, arguing it precludes “Big Tech” from enshrining favorable rules that would prevent Congress and other authorities from acting on issues like artificial intelligence and anti-monopoly efforts. They have previously criticized USTR and previous trade negotiations for what they say is an overrepresentation of business interests to the detriment of U.S. workers and marginalized communities.
 
But business groups -- and other lawmakers -- counter that such rules are critical in facilitating access to markets for small and medium-sized businesses, farmers and manufacturers. They immediately condemned the decision as akin to vacating U.S. leadership on the issue, which, they said, will allow China and others to push their version of the rules. This was echoed by the letter from business groups on Tuesday.
 
“These are core disciplines that advance U.S. innovation and competitiveness, fuel economic growth, and support the exchange of knowledge and information necessary to address climate, health, and other global challenges,” the groups insisted. “They also form a breakwall against the rising tide of global digital protectionism, particularly the egregious digital measures imposed by authoritarian regimes.”
 
The letter also notes that the Biden administration had pledged “as recently as May 2022” to pursue high-standard rules on digital trade.
 
However, the recent announcement “is a complete reversal” that shows the U.S. “will not confront measures that discriminate against American companies” and that will “further legitimize digital protectionism around the globe and advance the interests of our adversaries,” the business groups contended.
 
A senior U.S. official, when announcing the U.S. withdrawal of support of the provisions in Geneva, said that the administration remained committed to a “commercially meaningful” deal in the plurilateral negotiations on e-commerce at the WTO. The co-conveners of the talks are aiming for a “substantial conclusion” of the negotiations by the end of the year. A lack of U.S. support on the data and source code provisions likely leaves those off the table, but participants will aim to “lock in” gains made so far along with a few additional issues, Inside U.S. Trade reported recently <https://insidetrade.com/node/178204>. -- Hannah Monicken (hmonicken at iwpnews.com <mailto:hmonicken at iwpnews.com>)
 

Arthur Stamoulis
Citizens Trade Campaign
(202) 494-8826




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