Press Release: 2024-04-16

TechNet-Led Multi-Association Memorandum to Congress Expresses Concerns with the USTR’s 2024 National Trade Estimate Report

 



April 15, 2024 



Washington, D.C. – TechNet, the national, bipartisan network of innovation economy CEOs and senior executives, led a multi-association memorandum to members of the U.S. Senate Committee on Finance and the U.S. House Committee on Ways and Means expressing concerns with the U.S. Trade Representative’s (USTR) 2024 National Trade Estimate Report, which, unlike previous years, significantly scaled back its coverage of digital trade barriers despite their proliferation around the world.



In addition to TechNet, ACT | The App Association, the Business Roundtable, BSA | The Software Alliance, Coalition of Services Industries, the Consumer & Communications Industry Association (CCIA), the Consumer Technology Association (CTA), Engine, the Global Data Alliance, the Global Innovation Forum, the Information Technology Industry Council (ITI), the National Foreign Trade Council, the Software & Information Industry Association (SIIA), the U.S. Chamber of Commerce, and the U.S. Council for International Business signed the memo.



The following can be attributed to TechNet President and CEO Linda Moore:



“From China to Canada, countries around the world are racing to slow our growth and blunt our dominance by putting up restrictive trade barriers. USTR’s choice to walk away from longstanding and bipartisan digital trade policies is contrary to its authority provided by Congress and will enable our foreign competitors to fill the void we are leaving behind so they can advance their strategic objectives at our expense.



“USTR’s flawed approach to digital trade works against our national interests and is hurting U.S. businesses and workers. President Biden should direct the agency to reverse course. If not, Congress should assess whether USTR should represent the U.S. on digital economic issues moving forward.”



You can read the full memo here.



For Background:




  • Digital trade plays a significant role in the U.S. economy. The U.S. government estimates that the digital economy brought in $2.6 trillion in value added in 2022, representing roughly 10 percent of U.S. gross domestic product (GDP), and supported 8.9 million jobs that generated $1.3 trillion in annual compensation. But digital trade barriers undermine U.S. economic growth, innovation, and competitiveness.

  • Our analysis shows that in its 2024 National Trade Estimates Report, USTR reduced the number of country analyses of data localization mandates by over 70 percent (from 24 countries in 2023 to seven in 2024) and removed concerns with respect to at least 80 digital trade-related measures. Among the harmful digital trade barriers excluded from the 2024 NTE report were measures restricting cross-border data flows, requiring data localization, forcing disclosure of source code and/or algorithms, and discriminating against U.S. firms in favor of domestic competitors.

  • In October 2023, USTR unilaterally withdrew U.S. support from provisions under consideration at the World Trade Organization that would have protected U.S. firms from harmful trade barriers and discrimination, which has been roundly criticized by stakeholders, including Members of Congress from both parties and chambers.