WTO / Canadian Data Rules Proposal

Geneva (via Washington Trade Daily) – Canada has tabled a proposal at the World Trade Organization to ensure that governments do not “use personal information obtained to discriminate against or persecute natural persons on manifestly wrongful grounds,” for consideration of plurilateral Joint Statement Initiative on e-commerce group members, WTD has learned.

To counter any misuse of data collected from businesses by governments, Canada says its proposal seeks “to promote the trust and confidence of users and businesses in the digital economy, a desire shared by (JSI) participating Members.” The proposal, according to Canada, “would provide the global business community with assurance that governments will protect the personal information of their users when subject to requests for such information.”

In the process, “the users who submit personal information to businesses and other private entities online would have more confidence that their personal information will not be used against them when disclosed to government authorities,” Canada said in its paper issued on Friday. Canada reckons that “it is important that users and businesses benefit directly from any new rules on e-commerce, given they are the main actors in digital trade.”

Prevent Discrimination

Further, according to Canada, the proposed commitments may “help to prevent discriminatory requirements from being imposed on foreign businesses.” In the absence of commitments, “governments could subject foreign businesses to requests for user data, while not subjecting their domestic businesses to the same requirement. Such a step could effectively discourage individuals from providing personal data to foreign businesses, and lead to discriminatory measures which negatively affect digital trade.”

Canada wants its proposal to be subject to dispute settlement procedures, arguing that it has “consulted extensively with domestic and international stakeholders, all of whom have indicated strong support for these commitments.” The proposal is also “commercially relevant as it focuses on the relationship between businesses and governments.”

Canada argued that many “Members believe that rules on e-commerce should, among other goals, enhance confidence and trust in the digital economy, including through privacy-related measures. By building trust and confidence, this would result in even further economic growth of the digital economy, to the benefit of all.” Lastly, Canada argues that “given the continued growth of digital trade, and the sharing of users' personal information with businesses that this entails, there is a growing need for Members to take on relevant privacy disciplines.”

A group of JSI members, including the United States along with Australia, Canada, Japan, Singapore, Taiwan and the United Kingdom, circulated a proposal late last year on cross-border data flows by electronic means. This has proven to be a difficult area with several JSI members, including the European Union, China and Russia among others having their specific concerns.

It remains to be seen how the EU China, and Russia will respond to this proposal. Any progress on cross-border data flows remains unlikely at a time of entrenched differences between the US on one side, and China and Russia on the other, said several people who asked not to be quoted.