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2020 | OriginalPaper | Chapter

Privacy and Data Protection in the EU- and US-Led Post-WTO Free Trade Agreements

Author : Svetlana Yakovleva

Published in: Coherence and Divergence in Services Trade Law

Publisher: Springer International Publishing

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Abstract

The chapter addresses privacy and data protection in FTAs. It takes stock of the evolution of provisions on privacy and data protection in the post-WTO FTAs and FTAs currently under negotiation relying on EU- and US-led FTAs as an empirical basis. The chapter evaluates the trends and patterns of the development of these provisions and provides an outlook for the upcoming negotiations on electronic commerce at the WTO. It highlights the evolution of provisions on privacy and personal data protection in general exceptions, financial and telecommunications chapters, chapters on electronic commerce and digital trade. After identifying trends in the design and wording of these provisions in the EU- and US-led FTAs the chapter concludes that both trading partners tend to prefer their own template for regional FTAs.

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previous chapter Disciplines on Domestic Regulations Affecting Trade in Services: Convergence or Divergence?

next chapter Addressing Digital Services in PTAs: Only Convergence in the 11th Hour?

Marrakesh Agreement on the Establishment of the World Trade Organization (WTO) (WTO Agreement).

General Agreement on Trade in Services, Annex 1B to the WTO Agreement.

Article 5(d) GATS Annex on Telecommunication.

Article B.8 of the 1994 Understanding on Commitments in Financial Services (Understanding).

Wolfe (2019), p. s64.

Directive 95/46/EC of the European Parliament and of the Council on the protection of individuals with regard to the processing of personal data and on the free movement of such data OJ 1995 L 281, 31.

Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC, OJ 2016 L 119/1-88.

Charter of Fundamental Rights of the European Union, OJ 2012 C 326.

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Articles 40(2), 42(2), 46 GDPR.

Svantesson (2011), p. 184; LeSieur (2012), pp. 101, 103, 104.

Swire and Litan (1998), pp. 188–196. On the contrary, Shaffer argued that a hypothetical US claim regarding WTO inconsistency of EU’s framework for personal data transfers “would likely not prevail.” Shaffer (2000), pp. 46–51.

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Burri (2017b), pp. 18 and 22.

Wolfe (2019), p. s78.

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Le Roux (2017); Fontanella-Khan J., Data Protection Ruled out of EU-US Trade Talks, Financial Times, 4 November 2013.

Comprehensive and Progressive Agreement for Trans-Pacific Partnership, 8 March, 2018, https://www.mfat.govt.nz/assets/Trans-Pacific-Partnership/Text/14.-Electronic-Commerce-Chapter.pdf.

Letter from the Executive Office of the President, Office of the United States Trade Representative, 30 January 2017, https://ustr.gov/sites/default/files/files/Press/Releases/1-30-17%20USTR%20Letter%20to%20TPP%20Depositary.pdf.

Agreement between the United States of America, the United Mexican States, and Canada (USMCA), signed 30 November 2018, https://ustr.gov/trade-agreements/free-trade-agreements/united-states-mexico-canada-agreement/agreement-between.

United States – Japan Digital Trade Agreement, signed on 7 October 2019, https://ustr.gov/sites/default/files/files/agreements/japan/Agreement_between_the_United_States_and_Japan_concerning_Digital_Trade.pdf.

“Personal information” is a U.S. law term for “personal data.”

Geist M (2018) Data rules in modern trade agreements: toward reconciling an open internet with privacy and security safeguards. CIGI International Policy Considerations, https://www.cigionline.org/articles/data-rules-modern-trade-agreements-toward-reconciling-open-internet-privacy-and-security.

Wolfe (2019), pp. s65–s66.

European Commission, 76 WTO Partners Launch Talks on E-commerce, 25 January 2019, http://trade.ec.europa.eu/doclib/press/index.cfm?id=1974&title=76-WTO-members-launch-talks-on-e-commerce; Foroohar R., Nations Move to Avoid Global Ecommerce ‘Splinternet’, Financial Times, 24 January 2019.

Economic Partnership, Political Coordination and Cooperation Agreement between the European Community and its Member States, of the One Part, and the United Mexican States, of the Other Part, 8 December 1997 OJ 2000 L 276/45, https://eeas.europa.eu/sites/eeas/files/28.10.2000_mexico.pdf.

Decision No. 2/2001 of the EU–Mexico Joint Council of 27 February 2001 implementing Articles 6, 9, 12(2)(b), and 50 of the Economic Partnership, Political Coordination and Cooperation Agreement (2001/153/EC) OJ 2001 L70, https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv%3AOJ.L_.2001.070.01.0007.01.ENG.

Agreement Establishing an Association between the European Community and Its Member States, of the One Part, and the Republic of Chile, of the Other Part, 11 November 2002 OJ 2002 L 352/3, http://eur-lex.europa.eu/resource.html?uri=cellar:f83a503c-fa20-4b3a-9535-f1074175eaf0.0004.02/DOC_2&format=PDF.

Agreement Establishing an Association between Central America, on the one hand, and the European Union and its Member States, on the other, 29 June 2012 OJ 2012 L 346/3, http://eur-lex.europa.eu/legal-content/en/TXT/PDF/?uri=CELEX:22012A1215(01)&rid=1.

Free Trade Agreement Between the European Union and its Member States, of the One Part, and the Republic of Korea, of the Other Part, 6 October 2010 OJ 2011 L. 127/6, http://eur-lex.europa.eu/legal-content/en/TXT/PDF/?uri=CELEX:22011A0514%2801%29&rid=1.

Trade Agreement Between the European Union and its Member States, of the One Part, and Colombia and Peru, of the Other Part, 31 May 2012 OJ 2012 L 354/1, http://publications.europa.eu/resource/cellar/e4c7ab87-4a17-11e2-8762-01aa75ed71a1.0001.04/DOC_30.

EU-Singapore Free Trade Agreement (not yet ratified by the EU). Text available at https://trade.ec.europa.eu/doclib/press/index.cfm?id=961.

Comprehensive Economic and Trade Agreement (CETA) between Canada, of the one part, and the European Union and its Member States, of the other part, 14 September 2014 OJ 2017 L 11/23, http://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:22017A0114(01)&from=EN.

EU-Japan Economic Partnership Agreement (JEFTA), text after legal revision available at https://trade.ec.europa.eu/doclib/press/index.cfm?id=1684.

European Commission, New EU-Mexico agreement: The Agreement in Principle and its texts, http://trade.ec.europa.eu/doclib/press/index.cfm?id=1833.

European Commission, EU Proposal for WTO Disciplines and Commitments Relating to Electronic Commerce, INF/ECOM/22, 2.7–2.8, 26 April 2019, http://trade.ec.europa.eu/doclib/docs/2019/may/tradoc_157880.pdf.

EU Proposal for the Digital Trade Chapter of EU-Australia FTA (Oct. 10, 2018), http://trade.ec.europa.eu/doclib/docs/2018/december/tradoc_157570.pdf.

On file with Author. EU’s proposal for Digital Trade chapter of a possible modernised EU-Chile Association Agreement is not yet publicly available.

European Commission, Report of the 5th Round of Negotiations for a Free Trade Agreement Between the European Union and Indonesia, 9–13 July 2018, http://trade.ec.europa.eu/doclib/docs/2018/july/tradoc_157137.pdf.

EU Proposal for the Digital Trade Chapter of EU-New Zealand FTA, 25 September 2018, http://trade.ec.europa.eu/doclib/docs/2018/december/tradoc_157581.pdf.

On file with Author. EU’s proposal for Digital Trade chapter of a possible modernised EU-Tunisia FTA is not yet publicly available.

Bipartisan Trade Promotion Authority Act of 2002, sections 2102(b)(8) and 2102(b)(9). Wunsch-Vincent (2003), p. 7.

United States-Australia Free Trade Agreement, with Annexes and Related Exchange of Letters, 18 May 2004, 43 I.L.M. 1248, https://ustr.gov/trade-agreements/free-trade-agreements/australian-fta/final-text.

United States-Bahrain Free Trade Agreement, 14 September 2004, 44 I.L.M. 544, https://ustr.gov/trade-agreements/free-trade-agreements/bahrain-fta/final-text.

Dominican Republic-Central America-United States Free Trade Agreement, 28 May 2004, 43 I.L.M. 514, https://ustr.gov/trade-agreements/free-trade-agreements/cafta-dr-dominican-republic-central-america-fta/final-text.

United States-Chile Free Trade Agreement Implementation Act, Pub. L. No. 108-77 (2003) https://ustr.gov/trade-agreements/free-trade-agreements/chile-fta/final-text.

United States-Morocco Free Trade Agreement, 15 June 2004, 44 I.L.M. 544, https://ustr.gov/trade-agreements/free-trade-agreements/morocco-fta/final-text.

United States-Korea Free Trade Agreement, 1 April 2007, 46 I.L.M. 642 https://ustr.gov/trade-agreements/free-trade-agreements/korus-fta/final-text.

United States-Oman Free Trade Agreement, 1 January 2006, https://ustr.gov/trade-agreements/free-trade-agreements/oman-fta/final-text.

United States-Panama Trade Promotion Agreement, 31 October 2012, https://ustr.gov/trade-agreements/free-trade-agreements/panama-tpa/final-text.

United States-Peru-Trade Promotion Agreement, 12 April 2006, https://ustr.gov/trade-agreements/free-trade-agreements/peru-tpa/final-text.

United States-Singapore Free Trade Agreement, 3 September 2003, 117 Stat. 948 https://ustr.gov/trade-agreements/free-trade-agreements/singapore-fta/final-text.

United States-Colombia Trade Promotion Agreement, 15 May 2012, https://ustr.gov/trade-agreements/free-trade-agreements/colombia-fta/final-text.

Regan (2007), p. 350; Venzke (2011), p. 1138.

Yakovleva (2018), pp. 497–499.

See e.g. Article 28.3(2)(c)(ii) CETA, Article 8.62(e)(ii) EU-Singapore FTA, Article 167(1)(e)(ii) FTA between EU, Colombia and Peru, Article 27(2) EU-Mexico Joint Council Decision, Article 7.50(e)(ii) EU-Korea FTA, Article 203(1)(e)(ii) EU Association Agreement with Central America, Article 135(1)(e)(ii) EU-Chile Association Agreement, Article 22.1(2) US-Australia FTA, Article 23.1(2) KORUS FTA, Article 21.1(2) US-Singapore FTA, Article 21.1(2) Dominican Republic-Central America-United States FTA, Article 21.1(2) US – Panama PTA, Article 32.1(2) USMCA, Article 29.1(3) CPTPP.

Article 15.3(4) of CETA, article 9.2(4) of US – Singapore FTA, article 13.2(4) of Dominican Republic-Central America-United States FTA, article 13.2(4) of the US – Panama TPA, article 13.2(4) of US-Chile FTA, article 13.2(4) of US-Morocco FTA, article 14.2(4) of US-Peru FTA, article 14.2(4) of US-Colombia FTA, article 18.3(4) of USMCA, article of 13.4(4) CPTPP.

Article 8.27 of EU-Singapore FTA, article 149 of FTA between EU, Colombia and Peru, article 7.35 of EU-Korea FTA, article 192 of the EU association agreement with Central America, article 8.44(4) of JEFTA, article TS.6(4) of draft Telecommunications chapter of modernised EU-Mexico FTA.

For discussion see Yakovleva (2018), pp. 492–294.

See e.g. article 15.3(4) of CETA.

Article 8.44(4) of JEFTA, article TS.6(4) of draft Telecommunications chapter of modernised EU-Mexico FTA.

Article 9.2(4) of US – Singapore FTA, article 13.2(4) of Dominican Republic-Central America-United States FTA, article 13.2(4) of US – Panama TPA, article 13.2(4) of US-Chile FTA, article 13.2(4) of US-Morocco FTA, article 14.2(4) of US-Peru FTA, article 14.2(4) of US-Colombia FTA, article 12.2(4) of US – Australia FTA, article 14.2(4) of KORUS FTA, article 12.2(4) US-Bahrain FTA, article 13.2(4) of US-Oman FTA, article 18.3(4) USMCA, article 13.4(4) CPTPP.

Article B.8 of Understanding on commitments in financial services, article 13.15(1) of CETA, article 157(1) of FTA between EU, Colombia and Peru, article 22(1) of the EU association agreement with Mexico, article 7.43(a) of EU-Korea FTA, article 198(1) of FTA between the EU and Central America, article 122(1) of the EU-Chile association agreement, article 8.54(1) of EU-Singapore FTA.

Article 8.54(2) of EU-Singapore FTA, article 157(2) of FTA between EU, Colombia and Peru, article 198(2) of the EU association agreement with Central America, article 7.43(b) of EU-Korea FTA, article 22(2) of EU-Mexico Joint Council Decision, Article 13.15(2) of CETA.

See e.g. article 8.54(2) of EU-Singapore FTA, article 157(2) of FTA between EU, Colombia and Peru, article 198(2) of the EU association agreement with Central America, article 7.43(b) of EU-Korea FTA, article 22(2) of EU-Mexico Joint Council Decision.

Article 8.63(2) of JEFTA.

Article XX.10 Chapter 12 of draft EU-Mexico FTA.

Annex 13-B, section B of KORUS FTA, article 17.17 of USMCA.

Chapter 16 of CETA, chapter 8 Section F of EU-Singapore FTA, chapter 6 of FTA between EU, Colombia and Peru, chapter 7 section F of EU-Korea FTA, chapter 6 of the EU association agreement with Central America, chapter 16 of US-Australia FTA, chapter 15 of KORUS FTA, chapter 14 of US-Singapore FTA, chapter 14 of US-Central America FTA, chapter 14 of US-Panama FTA, chapter 13 of US-Bahrain FTA, chapter 15 of US-Chile FTA, chapter 14 of US-Morocco FTA, chapter 14 of US-Oman FTA, chapter 15 of US-Peru FTA, chapter 15 of US-Colombia PTA.

Yakovleva (2018), p. 496.

See also Monteiro and Teh (2017), p. 71.

See also article 162(2) of FTA between EU, Colombia and Peru, article 7.48(2) of EU-Korea FTA, article 201(2) of the EU association agreement with Central America.

For a discussion see Yakovleva (2018), pp. 482–487 and 498.

Article 164 of FTA between EU, Colombia and Peru.

Article 202 of the EU Association agreement with Central America, article 7.49(1) of EU-Korea FTA, article 16.6(1) of CETA, article163(1) of FTA between EU, Colombia and Peru.

Article 14.5 of US-Panama TPA, article 15.5 of US-Chile FTA.

For discussion, see Yakovleva (2020).

Compare Aaronson (2017), pp. 8–10 with Communication from the European Commission, Exchanging and Protecting Personal Data in a Globalised World, 10 January 2017, p. 6 (Jan. 10, 2017), https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:52017DC0007&from=EN. See also Yakovleva (2020).

Yakovleva and Irion (2020).

Burri (2017b), p. 22.

See Irion et al. (2016), pp. 44–45 and 59–60, Fernández Pérez M., Corporate-sponsored privacy confusion in the EU on trade and data protection, EDRI, 12 October 2016, https://edri.org/corporate-sponsored-privacy-confusion-eu-trade-data-protection/, European Parliament resolution of 8 July 2015 containing the European Parliament’s recommendations to the European Commission on the negotiations for the Transatlantic Trade and Investment Partnership (TTIP) (2014/2228(INI)), European Parliament resolution of 3 February 2016 containing the European Parliament’s recommendations to the Commission on the negotiations for the Trade in Services Agreement (TiSA) (2015/2233(INI)).

Article 8.81 of JEFTA, article XX Chapter 16 of draft EU-Mexico Free Trade Agreement, Fortnam (2017).

Horizontal provisions for cross-border data flows and for personal data protection (in EU trade and investment agreements) http://trade.ec.europa.eu/doclib/docs/2018/may/tradoc_156884.pdf.

EU’s proposal for the Digital Trade Chapter of EU-New Zealand FTA, 25 September 2018, http://trade.ec.europa.eu/doclib/docs/2018/december/tradoc_157581.pdf, EU’s proposal for the Digital Trade chapter of EU-Australia FTA, 10 October 2018, http://trade.ec.europa.eu/doclib/docs/2018/december/tradoc_157570.pdf, European Commission, Report of the 5th round of negotiations for a Free Trade Agreement between the European Union and Indonesia, 9 to 13 July 2018 http://trade.ec.europa.eu/doclib/docs/2018/july/tradoc_157137.pdf, EU’s proposal for a Digital Trade chapter for a Deep and Comprehensive Free Trade Area (DCFTA) with Tunisia, 9 November 2018, https://trade.ec.europa.eu/doclib/docs/2019/january/tradoc_157660.%20ALECA%202019%20-%20texte%20commerce%20numerique.pdf, the available EU’s proposal for Digital Trade chapter of a possible modernised EU-Chile Association Agreement of 5 February 2018 only contains a placeholder for provisions on data flows, https://trade.ec.europa.eu/doclib/docs/2018/february/tradoc_156582.pdf.

Communication from the European Union, EU proposal for WTO disciplines and commitments relating to electronic commerce, INF/ECOM/22, 26 April 2019, http://trade.ec.europa.eu/doclib/docs/2019/may/tradoc_157880.pdf.

The same provision is also envisaged in Article 73 of the Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS), and several international trade agreements adopted after the Uruguay Round.

Cottier and Delimatsis (2008), pp. 329–348.

Russia — Measures Concerning Traffic in Transit WT/DS512/R 5 April 2019 (Russia – Traffic in Transit).

Russia – Traffic in Transit, paras. 7.102–7.104.

Westin (1997), pp. 181–182; Jackson (1989), p. 205, Article XXI Security Exceptions, WTO Analytical Index of the GATT, at 600–601, https://www.wto.org/english/res_e/booksp_e/gatt_ai_e/art21_e.pdf.

Russia – Traffic in Transit, para. 146. Before this decision was adopted, scholars were sharply divided on whether the national security is self-judging. Compare Alford (2011), pp. 701–702 with Schloemann and Ohlhoff (1999), pp. 426–427, 438, 443ff, arguing that it is not.

Russia – Traffic in Transit, para. 7.108.

Russia – Traffic in Transit, para. 7.132. Several scholars made the same argument before this decision was adopted. See e.g. Schloemann and Ohlhoff (1999), pp. 446–447.

Russia – Traffic in Transit, para. 7.133.

100

Herbert Smith Freehills LLP, Indonesia proposes amendments to its data localisation requirement, Lexology, 11 December 2018, https://www.lexology.com/library/detail.aspx?g=a116020b-cee3-433f-b62b-a5e988477d8e.

101

Manak I., U.S. WTO E-commerce Proposal Reads Like USMCA, International Economic Law and Policy Blog, 8 May 2019, https://worldtradelaw.typepad.com/ielpblog/2019/05/us-wto-e-commerce-proposal-reads-like-usmca.html.

102

Wolfe (2019), pp. s75 and s77. For a comparison between EU and US approaches to privacy and data protection see Schwartz and Solove (2014).

103

Article 14.11(2) of CPTPP, article 19.11(1) of USMCA.

104

Article 14.11 (3) of CPTPP. Article 19.11(2) of USMCA contains an almost identical provision.

105

Merriam-Webster online dictionary, https://www.merriam-webster.com/dictionary/necessary.

106

WTO, Note by the Secretariat, ‘“Necessity” in the WTO’, S/WPDR/W/27, 2 December 2003, para. I.A.5.

107

Article 14.8 of CPTPP and article 19.8 of USMCA.

108

Wolfe (2019), p. s66.

109

Wolfe (2019), p. s65.

110

Bradford (2012), p. 22ff. In contrast, Young disagrees that the EU is exporting its regulatory model. Young (2015), p. 1255.

111

Burri (2017a), p. 128.

112

Mattoo and Meltzer (2018), pp. 5–6 and 25.

113

Yakovleva and Irion (2020).

114

European Commission implementing decision pursuant to Directive 95/46/EC of the European Parliament and of the Council on adequacy of the protection provided by the EU-U.S. Privacy Shield of 12.07.2016 C(2016) 4176 final.

115

Yakovleva and Irion (2020), p. 14.

116

Yakovleva and Irion (2020), p. 14.

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Title: Privacy and Data Protection in the EU- and US-Led Post-WTO Free Trade Agreements
Author: Svetlana Yakovleva
Publisher: Springer International Publishing
Book: Coherence and Divergence in Services Trade Law
Print ISBN: 978-3-030-46954-2

Electronic ISBN: 978-3-030-46955-9

Copyright Year: 2020
DOI: https://doi.org/10.1007/978-3-030-46955-9_5