The digital economy is facing two divergent trends. Information is moving across borders at record volumes, yet domestic restrictions on these flows are also on the rise. Privacy, security, law enforcement access, among others, are all important policy concerns that governments today seek to protect. Restrictive data policies, however, may not be the optimal solution.
This paper provides insights, developed through expert inputs, on domestic good practices as well as trade policy tools that can help balance facilitating cross-border data flows while protecting other goals. A key step will involve building confidence between nations that allowing data to flow abroad will not subvert other policy priorities.