The Governance of Cross-Border Data Flows in Trade Agreements: Is the Cptpp Framework an Ideal Way Out?

The regulations of cross-border data flows is a growing challenge for the international community. International trade agreements, however, appear to be pioneering legal methods to cope, as they have grappled with this issue since the 1990s. The World Trade Organization (WTO) rules system offers a partial solution under the General Agreement on Trade in Services (GATS), which covers aspects related to cross-border data flows. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the United States-Mexico-Canada Agreement (USMCA) have also been perceived to provide forward-looking resolutions. In this context, this article analyzes why a resolution to this issue may be illusory. While they regulate cross-border data flows in various ways, the structure and wording of exception articles of both the CPTPP and USMCA have the potential to pose significant challenges to the international legal system. The new system, attempting to weigh societal values and economic development, is imbalanced, often valuing free trade more than individual online privacy and cybersecurity. Furthermore, the inclusion of poison-pill clauses is, by nature, antithetical to cooperation. Thus, for the international community generally, and China in particular, cross-border data flows would best be regulated under the WTO-centered multilateral trade law system.