Trade

The U.S. is the global leader in developing and deploying innovative digital technologies; the digital economy is a vital component of U.S. economic competitiveness and future growth.  It is imperative that the Administration and Congress pursue a decisive trade agenda that drives economic growth, creates jobs, strengthens U.S. competitiveness, and stands up for U.S. economic interests abroad.  Maintaining and strengthening the rules-based global trading system, including through strong digital trade provisions, will ensure that U.S. businesses and workers are able to compete fairly in the global marketplace and take advantage of global market opportunities.  The U.S. must also stand against discriminatory and unfair trade practices that target U.S. firms.  The U.S. can improve market access for the technology sector by developing and cultivating strong relationships with our international trading partners, leading efforts to shape global trade rules, upholding digital trade, and avoiding unnecessary trade wars that hurt American consumers, workers, and businesses of all sizes.

TechNet puts forward the following policy recommendations:

• The U.S. must exercise strong leadership at the World Trade Organization (WTO) which is the world’s preeminent trade body and critical for a rules-based trading system. S. representatives should seek to further trade liberalization at the WTO, including reductions in tariff and non-tariff barriers to information, communications, and advanced energy technology products, services, and investments, and the continued renewal of the WTO moratorium on customs duties on electronic transmissions.
• Additionally, the U.S. must reverse its decision to abandon longstanding, bipartisan digital trade positions at the WTO and resume its support for prohibitions on forced data localization, tech transfer, and source code disclosure, while ensuring non-discriminatory treatment of digital products.
• The U.S. should also restore serious interagency coordination on trade and reduce the extreme level of influence that the Department of Justice and Federal Trade Commission have exerted on trade policy.
• Congress and the Administration should work to advance comprehensive trade negotiations and agreements with willing partners in bilateral frameworks and plurilateral frameworks while ensuring that U.S. free trade agreement partners continue to comply with commitments made under existing trade agreements. Congressional support for these endeavors is crucial.
• Generally, international trade agreements should reduce barriers to markets for digitally delivered goods and services, promote the free flow of data across borders, contain “safe-harbors” against intermediary liability, and include strong protections for intellectual property.
• It is imperative that the Indo-Pacific Economic Framework includes quality digital trade standards and strong investor protections, especially as China’s influence grows in the region and throughout the world.
• Recognizing the complexity of issues in the U.S.-China relationship, we urge the Administration to find ways to conclude the trade war with China and remove the harmful tariffs that U.S. importers continue to pay and pass along to American consumers. The U.S. should also double down on our efforts to curb China’s discriminatory practices by leveraging the support and engagement of our international partners and allies, especially with respect to critical and emerging technologies and market access.  Finally, all of this should be done with a view toward minimizing supply chain disruptions that could harm American innovation and leadership.
• The U.S. should push back against the European Union’s discriminatory measures that target U.S. tech firms, such as the Digital Markets Act and Digital Services Act, and threats of digital services taxes.  We encourage the use of the EU-U.S. Trade and Technology Council to adjudicate these issues.  At the same time, the Administration should work closely with Congress to enact measures such as a federal privacy law that will influence global policy and trade decisions, including with our EU counterparts.
• Congress and the Administration should pursue customs modernization and open payment systems that support e-commerce and digital trade flows, particularly by small- and medium-sized enterprises (SMEs). This support includes trade facilitation measures and customs relief to small businesses operating abroad by compelling our trading partners to raise their de minimis thresholds to better align with the standards of the U.S. and preserving the current U.S. de minimis threshold.