The International Trade Committee has today (28 June 2021) published its report on Digital Trade and Data.
Digital trade is the digitally enabled trade of goods and services, it requires the movement of data across borders. Digital trade and data have been a priority for the government in its free trade agreement (FTA) negotiations.
The report examines the impact of new trade agreements on the protection of UK citizens’ data, the importance of a digital trade strategy and potential changes to the UK’s data protection laws.
Chair’s comments
Commenting on the report, Angus Brendan MacNeil MP, Chair of the International Trade Committee, said:
“At a time when many of us are working, socialising and shopping online, digital trade and the protection of our personal data are becoming increasingly important.
“The benefits of digital trade are significant, particularly when goods and services are available in an instant and from the comfort of our homes. However, there can be costs to this convenience. We know there are concerns about the protection of personal data, as well as about unnecessary burden and bureaucracy placed on businesses by data protection rules.
“With the UK forging independent trade agreements, this is a pivotal moment for the Government to produce a coherent digital trade strategy, laying out the rules of engagement and how we can protect our data online. Transparency is key, and the Government should explain the impact of any new trade agreement on the UK’s ability to regulate digital trade and data.
“Naturally, as we come to scrutinise individual free trade agreements, digital trade and data will be a topic my Committee watches closely.”
A digital trade strategy
The committee supports the Government’s focus on digital trade and data but also recommended that the Government uses the opportunity of new trade agreements to craft a clear overarching strategy on digital trade and data, which clarifies the UK’s approach across all trade negotiations and how this approach interacts with domestic law.
Data protection in the UK
The Committee also advises the Government to asses the impact of the agreement on the protection of citizens’ data, the ability of the UK to maintain its data protection regime, and the risk of UK citizens’ data being passed onto third countries.
Data adequacy with the EU
The Committee welcomes the Government’s progress in achieving a draft adequacy decision but recommends that the Government publishes an assessment of the potential impact of new trade agreements on maintaining data adequacy with the European Union.
Joining CPTPP
The Committee recommends that the Government states what changes it anticipates as a result of accession to CPTPP, including those related to the management of EU citizens’ personal data and the subsequent impact on UK stakeholders.
Data privacy
While the Committee welcomes the Government’s intention to build on GDPR, it also recommends the government sets out how the UK will depart from the EU’s GDPR, while maintaining data adequacy and minimising regulatory burdens for businesses.