Last March 8, 2024, EngageMedia and the Digital Trade Alliance (DTA) conducted a two-hour training session for Indonesian civil society organisations (CSOs) on data trade agreements and their relation towards artificial intelligence (AI) governance in Jakarta.
The developing nations in the Global South are still in the process of establishing domestic regulatory frameworks for AI. Based on EngageMedia’s previous capacity building session, it is imperative to comprehend that AI’s functionality depends on data. This session with DTA emphasised the importance of data privacy and security, specifically in digital trade agreements. Indonesia, for instance, has trade agreements that predominantly focus on agricultural and industrial products. However, the government recently issued personal data protection bills that lack implementing regulations.
Rishab Bailey, DTA Research Director, gave two presentations on the intersection of digital rights and digital trade. He explained how Big Tech has been seizing opportunities to create a “digital ecosystem” with friendly provisions in digital trade agreements so that government attempts at regulating them would be in their favour.
Critical human rights issues related to digital and data trade agreements include source code disclosure, cross-border data flows, location of data storage, and non-discrimination. Non-government organisations should advocate for pro-consumer and rights-based positions among local authorities in negotiations at the Indo-Pacific Economic Framework for Prosperity (IPEF), the World Trade Organization, and similar organisations to protect people’s rights in the digital ecosystem.
The session also discussed digital trade regulations in India, Australia, Singapore, Indonesia, and the Philippines, as well as the first pillar of the IPEF provision, Trade, primarily focusing on the digital economy. The US government claimed this agreement would enforce “high standards” on data flows, AI ethics, and online privacy. However, according to Bailey, the broad free flow of data clauses can limit states’ ability to regulate data and serve their interests. Governments should retain the ability to regulate data to protect privacy and security and enhance law enforcement, economic, and strategic purposes for domestic users and consumers.
Jeanne Huang, an Associate Professor from Sydney University, gave a talk explaining how China sought to enhance the commercial potential of data by implementing a new data property rights system. This would likely affect China’s position in future international trade negotiations. The Chinese data property rights system aims to maintain fair competition between Chinese companies in the data processing ecosystem, Huang said.
Finally, Pablo Kramcsak, a Ph.D. researcher from Vrije Universiteit Brussel, gave a presentation on how the Digital Economy Partnership Agreement (DEPA) was created to facilitate digital trade. However, it rebranded the older Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP), which prioritised corporate interests over privacy rights. DEPA requires signatory countries to recognise each other’s data protection trust marks for cross-border data transfers, but its personal information protection provisions lack minimum standards.
The session was instrumental in increasing CSO knowledge and understanding of data trade and AI governance, positioning them to better engage in future policy development.
