The TPP and the Digital Economy the Agreement’s Potential as a Benchmark for Future Rule-Making
The way things are quickly changing in the internet economy is important from the standpoint of regulation (and thus government actors and policymakers), since legislative and regulatory frameworks that are too restrictive may tend to inhibit the emergence of new business models or may impede the adoption of innovative products and solutions that have the potential to disrupt established business models and those interests that are behind them. This is in fact the very problem we continue to encounter today and that confront a range of recent innovations, but is particularly visible in the battles being waged over different platforms and services that have emerged in the so-called “sharing economy” [For more on the sharing economy see Telles (2016)]. This chapter examines some of the negotiating outcomes achieved in the Trans-Pacific Partnership and other negotiating fora on rules for the digital economy. This chapter also discusses whether or not the tentative negotiating outcomes achieved in the TPP can be considered the starting point for an emerging international consensus on these rules. Although now very probably defunct as an economic integration project, the TPP still constitutes a helpful starting point given that it nevertheless constitutes an agreed body of rules concluded between a very diverse set of developing and advanced economies with a distinctly divergent set of objectives and approaches when it comes to regulating certain aspects of the internet economy.
KeywordsTrans-Pacific Partnership Digital economy E-commerce Information and communications technology ICT Trade rules for the digital economy Regional Comprehensive Investment Partnership Trade in Services Agreement Trans Atlantic Trade and Investment Partnership
Doctoral candidate at the University of New South Wales Faculty of Law and Vice-President Global Government Affairs at Huawei Technologies. The view expressed in this chapter are solely those of the author and are not attributable to either UNSW or Huawei. The author would like to thank James Lockett, Colin Picker and Heng Wang for valuable feedback and input. Any inaccuracies or omissions remain solely the fault of the author.
- Bank, D. (2013). Microsoft to let governments see source code for windows. The Wall Street Journal, 1. Available at http://www.wsj.com/articles/SB1042592554169993184. Accessed on May 1, 2016.
- Barfield, C. (2015). When trade and tech collide: Digital policy challenges and solutions for 2016 and beyond, 1. American Enterprise Institute. Available at http://www.aei.org/publication/when-trade-and-tech-collide/. Accessed on May 1, 2016.
- Barray, A. (2015). TTIP is unlikely to happen anytime soon and here’s why. Vocal Europe, 1. Available at http://www.vocaleurope.eu/2015/06/20/ttip-is-unlikely-to-happen-anytime-soon-and-heres-why/. Accessed on May 1, 2016.
- Berden, K., & Francois, J. (2015). Quantifying Non-tariff measures for TTIP, Paper No. 12 in the CEPS-CTR project ‘TTIP in the balance’ and CEPS special Report No. 116 1. Available at https://www.ceps.eu/system/files/SR116%20Berden%20and%20Francois%20NTMs.pdf. Accessed on May 1, 2016.
- Bullock, D., & Couleau, A. (2014). Transatlantic trade and investment partnership (TTIP), Part 2: TTIP, regulatory harmonization and non-tariff barriers to trade. Policy Matters, 1. Available at http://policymatters.illinois.edu/transatlantic-trade-and-investment-partnership-ttip-part-2-ttip-regulatory-harmonization-and-non-tariff-barriers-to-trade/. Accessed on May 1, 2016.
- Business Software Alliance. (2012). Lockout: How a new wave of trade protectionism is spreading through the world’s fastest-growing IT markets—And what to do about it, 1. Available at http://www.bsa.org/~/media/Files/Policy/Trade/BSALockout2012.pdf. Accessed May 2016.
- Carroll, L. (2015), What Hillary Clinton really said about TPP and the “gold standard”. Politifact. Available at http://www.politifact.com/truth-o-meter/statements/2015/oct/13/hillary-clinton/what-hillary-clinton-really-said-about-tpp-and-gol/. Accessed August 15, 2016.
- Chander, A. (2013). The electronic silk road: How the Web binds the world together in commerce, 1. Yale University Press.Google Scholar
- Chin, J., & Dou, E. (2016). China’s new cybersecurity law rattles foreign tech firms. Wall Street Journal, 1. Available at http://www.wsj.com/articles/china-approves-cybersecurity-law-1478491064. Accessed on November 10, 2016.
- Crosby, D. (2016). Analysis of data localization measures under WTO services trade rules and commitments, 1. Geneva: E15 Initiative, ICTSD and WEF.Google Scholar
- Dong, J. (2014). Silicon Valley tech execs: Surveillance threatens digital economy. Palo Alto Online, 1. Available at http://www.paloaltoonline.com/news/2014/10/09/tech-execs-surveillance-is-harming-digital-economy. Accessed 1 May, 2016.
- Dou, E. (2016). IBM allows Chinese government to review source code. Wall Street Journal, 1. Available at http://www.wsj.com/articles/ibm-allows-chinese-government-to-review-source-code-1444989039. Accessed on November 10, 2016.
- Flies. B. A., & Sauvé, P. (1997). Of chips, floppy disks and great timing: Assessing the WTO information technology agreement, 1. Available at http://www.nomurafoundation.or.jp/en/wordpress/wp-content/uploads/2014/09/19971011_Barbara_Fliess_-_Pierre_Sauve.pdf. Accessed on May 1, 2016.
- Google. (2010). Enabling trade in the era of information technologies: Breaking down barriers to the free flow of information, 1. Google. Available at https://static.googleusercontent.com/media/www.google.com/en//googleblogs/pdfs/trade_free_flow_of_information.pdf.
- Goswami, A. G. & others. (2011). Exporting services: A developing country perspective, 1. World Bank. Available at http://elibrary.worldbank.org/doi/abs/10.1596/978-0-8213-8816-7. Accessed on June 3, 2016.
- Hammond, K. J. (2013). The value of big data isn’t the data. Harvard Business Review, 1. Available at https://hbr.org/2013/05/the-value-of-big-data-isnt-the. Accessed on June 3, 2016.
- Kaminski, M. E. (2014, forthcoming). The capture of international intellectual property law through the U.S. trade regime. Southern California Law Review, 1. Available at SSRN: http://ssrn.com/abstract=2354324. Accessed August 15, 2016.
- Kendrick, K. (2015). Risky business: Data localization. Forbes Capital Flows, 1. Available at http://www.forbes.com/sites/realspin/2015/02/19/risky-business-data-localization/#2b988fae8c8b. Accessed on May 5, 2016.
- Kommerskollegium (Swedish National Board of Trade). (2016). Trade regulation in a 3D printed world—A primer, 1. Available at http://unctad.org/meetings/en/Contribution/dtl_eweek2016_Kommerskollegium_en.pdf. Accessed on June 3, 2016.
- Krugman, P. (2014). No big deal, The New York Times Op-Ed, 1. Available at http://www.nytimes.com/2014/02/28/opinion/krugman-no-big-deal.html?_r=0. Accessed August 15, 2016.
- Lewis, M. K. (2013). The TPP and the RCEP (ASEAN+6) as potential paths toward deeper Asian economic integration. Asian Journal of WTO & International Health Law and Policy, 8, 359–378.Google Scholar
- Lovells, H. (2016). Legal analysis of the EU-US Privacy Shield: An adequacy assessment by reference to the jurisprudence of the Court of Justice of the European Union, 1. Available at http://www.hldataprotection.com/2016/03/articles/international-eu-privacy/hogan-lovells-issues-authoritative-legal-analysis-of-the-eu-u-s-privacy-shield/. Accessed on May 1, 2016.
- McGregor, J. (2010). China’s drive for ‘indigenous innovation’ A web of industrial policies, 1. Available at: https://www.uschamber.com/sites/default/files/legacy/international/asia/files/100728chinareport_0.pdf. Accessed on May 1, 2016.
- McKinsey Global Institute. (2011). Big data: The next frontier for innovation, competition, and productivity, 1. Available at http://www.mckinsey.com/business-functions/business-technology/our-insights/big-data-the-next-frontier-for-innovation. Accessed on June 3, 2016.
- Nolte, S., & others (2016). The expansion of the information technology agreement: An economic assessment, 1. European Commission. Available at http://trade.ec.europa.eu/doclib/docs/2016/april/tradoc_154430.pdf. Accessed on May 1, 2016.
- Peng, S.-Y. (2013). Is the Trade in Services Agreement (TiSA) a stepping stone for the next version of GATS? Hong Kong Law Journal, 43, 611–632.Google Scholar
- Petri, P. A., & Plummer, M. G. (2016). The economic effects of the Trans-Pacific Partnership: New estimates. WP 2, 16. Available at https://piie.com/publications/wp/wp16-2.pdf. Accessed on August 15, 2016.
- Telles, R. Jr. (2016). Digital matching firms: A new definition in the “sharing economy” space’. ESA Issue Brief #01-16, 1. Available at http://www.esa.gov/sites/default/files/digital-matching-firms-new-definition-sharing-economy-space.pdf. Accessed on June 3, 2016.
- USTR National Trade Barriers Estimate Report. (2016), 85. Available at https://ustr.gov/sites/default/files/2016-NTE-Report-FINAL.pdf. Accessed on May 5, 2016.
- Weber, R. H., & Burri, M. (2012). Classification of services in the digital economy, 1. Berlin: Springer.Google Scholar
- Whitney, L. (2016). ‘PayPal to shutter operations in Turkey over licensing hurdle’, C|Net 1. Available at http://www.cnet.com/news/paypal-to-close-operations-in-turkey-over-licensing-hurdle/. Accessed on June 3, 2016.
- Wunsch-Vincent, S. (2006). The WTO, the internet and trade in digital products EC–US perspectives (pp. 13–32). Hart Publishing.Google Scholar
- Wunsch-Vincent, S., & McIntosh, J. (2005). WTO, E-commerce, and information technologies: From the Uruguay Round through the Doha development Agenda, 1. Markle Foundation for the UN ICT Task Force. Available at https://www.wto.org/english/tratop_e/serv_e/sym_april05_e/wunschvincent_e.pdf. Accessed on November 1, 2016.