Exchanging Data with non-EU Countries

George Hollingbery Excerpts

Tuesday 23rd October 2018 General Committees

[The Minister for Trade Policy (George Hollingbery)]

The free flow of data, including personal data, is crucial to international co-operation and trade in the modern world, but it must be underpinned by high data protection standards. Because so much digital data involved in business and trade today includes at least some personal data, it is vital that the UK pursues trade rules in this area that provide clarity and certainty to industry and individuals so that personal data may continue to flow securely and freely while remaining protected.

I want to emphasise how the Government are committed to facilitating data flows as a key driver of global trade and the lifeblood of today’s digitalised economies while ensuring that rights to data protection and privacy are safeguarded. Data flows are vital not only to high-tech industries but to traditional sectors, goods and services. A trade framework for the UK and its international trading partners that includes robust commitments enabling cross-border data transfers and prohibiting data localisation is therefore critical for the UK’s future prosperity and economic growth. Even with the vast and numerous benefits to companies, consumers and economies that arise from the ability of organisations to share data easily across borders, dozens of countries are erecting unjustified barriers to cross-border data flows, such as data localisation requirements that seek to confine data within borders. Such a strategy can have a detrimental effect on the free flow of data. Trade agreements that include substantive provisions designed to enable data flow do not undermine data protection or privacy; on the contrary, such provisions tend to reinforce and safeguard protections for personal data and privacy.

Trade provisions often make clear that they do not prevent data from being subjected to data protection regimes and are therefore complementary to data protection and privacy. Countries should therefore be able to apply legitimate measures to protect data travelling to third countries. However, such international transfer regimes can facilitate or hinder the ability of countries to take advantage of trade measures on the grounds of privacy and the right to data protection.

After a period of some years and intense internal debate, we welcome the European Commission’s initiative in tabling proposals on cross-border data flows in trade agreements. That has been a sticking point in the Commission and the EU for a number of years. In particular, we welcome provisions designed to tackle unjustified data localisation requirements, which often serve to reduce trade with and new investment in trading partners, thereby depressing economic development. Although the UK Government see the provisions as a good starting point, we will look to be a world leader in setting clear and ambitious provisions in future trade agreements in this area as well as to shape the new global standards for modern free trade agreements.

Finally, I will have a crack at answering some of the questions from the hon. Member for Bristol North West. We very much welcome the EU’s position, as it has crystallised some of its thoughts and published a substantive text for the first time for use within the EU-Indonesia free trade agreement. We are looking for ambitious provisions to facilitate data flow and ensure that the playing field is level in areas such as data localisation. Any agreement will have to ensure that the high levels of personal data protection are not put at risk. As I am sure the hon. Gentleman knows well, the GDPR will be directly applicable in UK law straight after Brexit; it will be adopted as our standard. Trade provisions will therefore not form a legal basis for transfers of personal data. In short, we will lay the pipework and allow the playing field to be laid so that data can flow fairly across borders, but it is for others—the Department for Digital, Culture, Media and Sport, other authorities and other third-party countries—to turn the taps on or off.

[The Chair]

We now move on to questions to the Ministers. As we have two Ministers, perhaps Members could indicate which one they are directing their question at. This will go on until 3.37 pm, unless we get a Division, in which case injury time will be added.