US, Japan and Singapore propose free flow of data, oppose server localisation

The US, Japan and Singapore have proposed free flow of cross-border data electronically, prohibition of server localisation and formation of clear processes for government intervention invoking data privacy, moves that experts said will require India to safeguard its interests.

Experts fear the move could compel countries to share their confidential data with foreigners and put pressure on developing countries such as India to participate in these discussions and demands.

India is framing an e-commerce policy at present, besides insisting that foreign companies must store consumer data on servers located in India. These countries could expect easier norms in India’s national policy on ecommerce to suit their interests, especially in areas of server localisation and data sharing, experts said.


The three nations, part of a 71-member bloc that’s seeking global rules for ecommerce, made the proposals to the World Trade Organization in a series of submissions a fortnight ago. India is not a member of this bloc. “These papers could pressure India and others who are not part of the ecommerce coalition to join them by making them feel otherwise left out,” said a person aware of the development.

“We are making an ecommerce policy and demands by the US and Japan can adversely affect us. We need to see how India can safeguard its interests.”

Both the Japanese and the US submissions talk of free and open internet that encourages free flow of information and propose prohibition on data localisation and web blocking. On the other hand, Singapore has recommended identifying specific commitments in the services sectors that could enable and promote infrastructure development.

Japan said in its proposal that limiting the international transfer of data through government policies would encumber cross-border business operations and hinder the sound development of digital businesses.

At the 11th WTO Ministerial Conference last December in Buenos Aires, 71 countries — almost half the membership and accounting for about 77% of global trade — got together and launched intensive discussions on ecommerce.

“It’s a coordinated effort by these countries to maintain momentum and continue what they began in the last ministerial. They’re trying to create a negotiating template to form rules in this area,” said an expert on WTO matters.

The proposals talk of a global agreement to allow the least traderestrictive measures that fulfil legitimate public policy objectives, including personal data protection, predictability of the crossborder business environment and means to facilitate healthy growth of new digital industries and markets.