NEWS

USTR announced it was abandoning the longstanding U.S. approach to digital trade rules. Here’s how this decision will impact American companies and workers.

The administration’s policy reversal on digital trade this week was shrouded in little known acronyms, but the impact on American companies and the workers they employ will be swift and painful.  

This past week the Office of the U.S. Trade Representative (USTR) announced it was abandoning the longstanding U.S. approach to digital trade rules. USTR officials in Geneva announced the U.S. withdrawal of its previous proposals on data flows, data localization, and source code being discussed in World Trade Organization (WTO) negotiations on e-commerce. A USTR spokesman stated that the move was made “to provide enough policy space” for debates about digital trade to unfold. 

In reality, this move will directly harm American workers, invite unfair treatment of U.S. companies, and threaten our competitiveness. Unsurprisingly, it drew powerful bipartisan criticism from Congress and condemnation from the U.S. Chamber and a wide range of business groups. 

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