15 November 2021

Digital trade allows businesses to trade goods remotely to a wider consumer base. It encompasses digitally ordered transactions and digitally delivered services including activities such as the distribution of films and TV. In 2019, the UK’s remotely delivered trade was worth a staggering £326 billion - equating to around one quarter of Britain’s total trade in that year.

The G7 DIGITAL TRADE AGREEMENT

The G7 comprises the United States, Japan, Germany, Britain, France, Italy and Canada

The European Union’s General Data Protection Regulation (the GDPR – effectively incorporated into UK law post-Brexit as the UK GDPR) harmonised data privacy laws across Europe. It imposes obligations on any organisation that targets or collects data relating to data subjects in the European Union.

Contrary to the approach of the EU, the United States does not have a single, overarching, federal law like the EU’s GDPR. Instead, States have autonomy to adopt their own laws in relation to privacy and data security. Consequentially, definitions of personal data, what constitutes a data breach and timescales for reporting such a breach often differ between States. Hence the significant and potentially costly compliance issues that arise for businesses participating in international digital trade.

On 22 October 2021, G7 Trade ministers agreed to new Digital Trade Principles (“the Principles”) to govern digital trade and cross border data use.

The agreed Principles cover -

• Open digital markets;
• Cross border data flows with trust;
• Safeguards for workers, consumers and businesses;
• Digital trading systems; and
• Fair and inclusive global governance.

This agreement furthers objectives for digital trade as set by the UK government’s Department of International Trade on 20 September 2021, “to secure access for British businesses to overseas digital markets, so that firms can invest and operate across borders freely and in fair competition”.

WILL THERE BE NEW DATA PROTECTION LAWS OR REGULATIONS?

Probably. The G7’s objective is said to be the creation of a middle ground between the highly regulated data protection regimes used in European countries and the more open approach of the United States. This will involve a tricky balancing act and the devil will be in the detail but this agreement is an important first step.

BTO’s Data Protection Team can advise on all aspects of contentious and noncontentious data protection law, including drafting commercial documents and policies. For details, contact –

Paul Motion prm@bto.co.uk
Lynn Richmond lyr@bto.co.uk
Lauren McFarlane lmf@bto.co.uk
Ibinabo David-West ida@bto.co.uk