The transfer of data across borders support s trade in most service industries around the world as well as the growth of traditional manufacturing sectors. However, several countries have begun to adopt laws impeding the cross-border transfer of data, ostensibly in pursuit of policy objectives such as national security, public morals or public order, and privacy. Such domestic measures create potential concerns under both international trade law and international investment law. Accordingly, recent trade and investment negotiations such as the Trans-Pacific Partnership Agreement (TPP) include specific provisions mandating the permissibility of cross-border data transfer and prohibiting data localization in certain circumstances.
Mitchell, Andrew D. and Hepburn, Jarrod
"DON'T FENCE ME IN: REFORMING TRADE AND INVESTMENT LAW TO BETTER FACILITATE CROSS-BORDER DATA TRANSFER,"
Yale Journal of Law and Technology: Vol. 19
, Article 4.
Available at: http://digitalcommons.law.yale.edu/yjolt/vol19/iss1/4