[CTC] Major business groups to Greer: ‘Restore’ U.S. positions on digital trade

[Arthur Stamoulis]

Major business groups to Greer: ‘Restore’ U.S. positions on digital trade
Inside U.S. Trade, March 4, 2025
 
Nearly 40 major business groups are calling on U.S. Trade Representative Jamieson Greer to “restore” the U.S. to a leadership position on digital trade, which they argue means protecting cross-border data flows, prohibiting data localization and preventing digital services taxes, among other priorities.
 
In a March 3 letter <https://www.uschamber.com/international/trade-agreements/multi-organization-letter-urges-ustr-to-restore-us-leadership-on-digital-trade-rules> to Greer, the business groups and trade associations praised the U.S. approach to the digital trade during the first Trump administration and criticized the Biden administration for what they consider a retreat from those positions.
 
“During President Trump’s first term, and with your active support, the United States was a recognized leader in advocating for strong digital trade rules that facilitate the movement of data, prohibit foreign governments from forcing companies to localize data abroad, prevent discrimination against American digital products and services, and safeguard sensitive source code from forced disclosure by foreign governments as a condition for selling into their markets,” the letter says.
 
“Your appointment as USTR is an important opportunity to reassert U.S. leadership in this space to ensure that American workers and businesses can continue to compete around the world,” it adds.
 
The letter is signed by major business groups like the U.S. Chamber of Commerce, the National Foreign Trade Council, Business Roundtable and the Coalition of Services Industries, as well as large trade associations including the National Retail Federation, Pharmaceutical Research and Manufacturers of America, AdvaMed and the Motion Picture Assocation, among others.
 
The groups argued that the Biden administration, “without explanation, repudiated this approach by opting out of digital trade negotiations.” The U.S. under then-USTR Katherine Tai withdrew U.S. support for a handful of digital trade proposals in the plurilateral World Trade Organization negotiations on e-commerce, arguing Washington needed “policy space” to allow discussions on a range of emerging technology issues to play out. The decision was lauded by civil society groups and some lawmakers who said trade rules should not be able to preclude U.S. regulators from reining in “Big Tech” companies. Business groups and other lawmakers, meanwhile, criticized the move as leaving a leadership void for China to fill.
 
The letter urges Greer to “restore” that leadership, with the business groups highlighting their nine key principles for digital trade rules: robust protection of cross-border data flows, barring data-localization policies, preventing digital services taxes and other “revenue extraction,” addressing “discrimination” against U.S. companies, protecting source code, supporting small and medium-sized businesses,  promoting “high-standard” digital trade rules, boosting innovation and working toward international standards on issues like artificial intelligence.
 
“This should include reasserting a strong U.S. voice in E-Commerce-related discussions in the WTO,” the letter says about one of the principles. Participants in the WTO e-commerce talks concluded an agreement last year. The U.S. opted not to sign on at the time, citing concerns with its national security exception.
 
According to the business groups, pursuing such digital trade policy would fit well with President Trump’s priorities as laid out in his day-one “America First Trade Policy” memo.
 
“The America First Trade policy prioritizes identifying countries with which ‘the United States can negotiate agreements on a bilateral or sector-specific basis to obtain export market access for American workers, farmers, ranchers, service providers, and other businesses.’ Under your leadership, we have an invaluable opportunity to restore U.S. leadership in support of digitally enabled trade for American goods, services, and agriculture,” the letter concludes. “Adhering to these principles will not only benefit American workers and businesses, but also advance broader U.S. economic and strategic interests.”
 

Arthur Stamoulis
Citizens Trade Campaign
(202) 494-8826




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