Cross-border data exchange
Cross-border data exchange The digital transformation has led to an increase in global data flow. The global data sphere will grow from 33 zettabytes in 2018 to 175 zettabytes (the number 175 with 21 zeros) in 2025. 1 Not only consumers, but also companies are producing data ("Internet of Things"). Data is increasingly becoming the raw material for new services and business models. The size of the Internet economy is expected to more than double for the G20 economies, with an even higher growth rate for developing countries. This data production has a significant impact on companies and their production processes. In the age of digitalisation, production and trade are highly dependent on the increasing ability to transport, store and use digital information (data) across borders. The use of data facilitates, for example, the coordination of international production processes along global value chains. Small and medium-sized enterprises (SMEs) will have easier access to global markets, and larger firms will also benefit from increasingly digitalised operations. The transfer of personnel data to and from headquarters, for example, the sending of data to research and development (R&D) institutions abroad and after-sales services will be simplified. In view of the growth in data, questions arise about the legal framework. In the following, some of the already common international cooperation models regarding cross-border data transfer or data exchange are presented and critically explained, and the German industry's demands on policies are derived from them. It is not the aim of the paper to deal with the individual unilateral measures and laws of a single state. The following presentation makes no claim to be complete.
International regulatory frameworks German industrial companies are at home in markets around the world. They produce along global supply chains and sell their products and services through global distribution networks. For reasons of legal and operational efficiency, the BDI advocates globally uniform regulatory approaches ("one set of rules") and opposes acting unilaterally on a national scope. It is important to avoid an unnecessary patchwork of regulations, to which export-oriented SMEs find it difficult to adapt. This is important in order to benefit from the necessary economies of scale in the field of digital technology and to promote innovation. Where global solutions are difficult to find, well-designed bilateral, regional or plurilateral regulatory approaches should help to support companies in their operational business. Finally, protectionism must also be avoided. International regulation should create political and legal levers to counteract unjustified or disproportionate discrimination against European companies in world markets.
Trade policy Cross-border data exchange is increasingly regulated in trade agreements. This applies to bilateral and plurilateral initiatives and to the multilateral level of the World Trade Organisation (WTO). One reason for this is the direct or indirect connection between data flow and cross-border business processes and trade and investment decisions. On the other hand, data transfers are closely related to central political considerations such as the protection of personal rights and security (e.g. cyber-security). Regulations on data transfers are thus always a balancing act between partly competing political objectives. In terms of trade policy, they are linked to questions of market access and possible digital protectionism.
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Seagate, Data Age 2025, The Digitization of the World From Edge to Core, Page 3, URL: https://www.seagate.com/files/www-content/our-story/trends/files/idc-seagate-dataage-whitepaper.pdf.
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