Rep. Kelly Defends Digital Trade Freedom to Strengthen American Economy
Sends bipartisan letter to US Trade Ambassador seeking protection of open markets for digital trade in upcoming negotiations
WASHINGTON, DC — U.S. Representative Mike Kelly (R-PA) – a member of the House Ways and Means Committee – sent a bipartisan letter to U.S. Trade Representative Ambassador Michael Froman today to ensure that “binding obligations” are included in negotiations over the Trans-Pacific Partnership (TPP) trade deal to ensure that global markets remain open to digital products, services, and cross-border data flows that are key areas of U.S. competitiveness. The letter was co-authored by Rep. Kelly and Rep. Ron Kind (D-WI) and includes a total of 55 bipartisan signatories from Congress, including Ways and Means Committee Chairman Dave Camp (R-MI) and Ranking Member Sander Levin (D-MI). The letter can be viewed here.
Statement by Rep. Kelly:
“The free flow of information and open markets to new products and services throughout the world are constant, essential components to America’s economic strength. In the 21st century global economy, digital trade is a rapidly growing engine for innovation, business growth, and job creation here at home. It must be protected and permitted to flourish. The United States must champion such protections for free data flow in the upcoming Trans-Pacific Partnership negotiations and insist that they are included in any final agreement.”
Excerpts of letter to Ambassador Froman:
We urge you to include strong, binding obligations in this agreement [theTrans-Pacific Partnership] to ensure that markets are open to digital products and services and cross-border data flows.
In order to achieve modern, 21st century trade agreements, digital trade issues must be sufficiently addressed. … Any agreement presented to Congress will need to include provisions that specifically keep borders open to the free flow of data, prohibit countries from requiring the use of local data servers or other computing infrastructure as a condition for providing digital services, and ensure non-discriminatory treatment of digital products and services.
With close to 3 billion people now using the Internet, digital trade is an increasingly important driver of the U.S. and global economies. … [T]he US International Trade Commission has reported that US exports of digitally enabled services totaled more than $356 billion in 2011 — a 26 percent increase from 2007 — generating a trade surplus in the sector each year. This underscores why it is so important for industries across the economy — especially those with global operations — to be able to transfer data across borders.
All TPP countries will benefit from the free flow of data, a view shared by industries throughout the region. Businesses of all types and sizes are capitalizing on digital technologies to boost their productivity, streamline operations, and facilitate creativity and problem solving. For example, with infinitely scalable processing power and unimaginably vast data storage at their disposal, banks can analyze patterns to detect fraud; doctors can more efficiently assess the most effective treatments for diseases; and farmers can track soil, weather and plant data to maximize yields. … We need trade policies to encourage this kind of innovation and growth, not inhibit it.
Praise from trade associations:
“CSI is pleased to see a strong, bipartisan group of 55 Members of Congress stress the importance of digital trade in TPP. This letter shows that it is absolutely essential that TPP has strong enforceable commitments ensuring the free flow of data.” – Peter Allgeier, President Coalition of Services Industries (CSI)
“The increasingly broad support for strong data-flow provisions underscores the central importance of this issue to making the TPP a 21st century trade agreement. Preserving and encouraging the free flow of information across the world should be a top priority for trade ministers when they gather in Beijing for the next round of talks. We applaud today’s bipartisan House support and commend Representatives Kelly and Kind for their leadership on this issue.” – Victoria Espinel, President and CEO, BSA | The Software Alliance
“The overwhelming attention given to this bipartisan letter addressed to USTR Michael Froman, led by Rep. Kelly (R-PA) and Rep. Kind (D-PA), is a clear indication that a growing number of Members of Congress understand the importance of cross-border data flows to users, businesses, and future entrepreneurs who look to access content and reach consumers across the globe. As representatives of the technology industry in the United States, we appreciate the leadership these Members have taken on this issue and look forward to working with Congress to ensure the unrestricted movement of data within the Trans-Pacific Partnership and other ongoing free trade negotiations.” – Burak Guvensoylar, Director of Government Relations, TechAmerica
###