The US Chamber of Commerce published a letter on 3 March 2025 urging US Trade Representative Jamieson Greer to prioritise digital trade rules and strengthen US leadership in global markets.
This includes acting against foreign countries imposing digital services taxes to generate revenue from US digital products and services.
The letter calls on the new administration to prioritise implementing digital trade rules that uphold the following key principles:
- Facilitate Cross-Border Data Flows: Ensuring the free flow of data across borders is vital for all sectors of the economy, from agriculture to manufacturing to services and financial services. Seamless data transfer is crucial for real-time communication, operational efficiency in global supply chains, and combatting cybercrime around the world. Restrictions on data flows can hinder innovation, disrupt supply chains, and limit market access for U.S. companies.
- Prohibit Data Localization Mandates: Mandates that require data to be stored locally or prevent data from being processed overseas as a condition for doing business in a country create unnecessary barriers to exports and increase costs for businesses, particularly startups and small and medium-sized enterprises. These mandates can also undermine data security, cybersecurity, and privacy. Local storage requirements can lead to fragmented data management systems, increasing the risk of data breaches and compliance challenges.
- Prevent Discrimination Against U.S. Digital Products and Services: The United States must prevent foreign governments from implementing measures that serve as market access barriers and discriminate against American digital products and services. Such discrimination not only harms U.S. companies but also limits consumer choice and stifles competition. Discriminatory practices can include unfair licensing requirements or biased regulatory standards and quotas or procurement mandates that favor local competitors, including on issues like cloud, AI, content, and competition.
- Prevent Revenue Extraction Targeting U.S. Exports: Foreign governments are increasingly viewing competitive U.S. digital products and services as an attractive target for revenue-raising measures, to the detriment of U.S. exports. These measures include digital services taxes and similar discriminatory or extraterritorial tax measures, as well as attempts to impose customs formalities and duties on electronic transmissions. The United States should firmly oppose such measures, including by pushing to make permanent the WTO moratorium on customs duties on electronic transmissions.
- Safeguard Sensitive Source Code: Protecting source code and algorithms from forced disclosure, as a condition for doing business in a country, is essential to prevent cyber theft, support AI innovation, and maintain the integrity of U.S. technology. Forced disclosure mandates can expose U.S. enterprises to malicious cyber activity and intellectual property theft. Ensuring the confidentiality of source code helps protect proprietary technologies and maintain competitive advantages for the US.
- Promote High-Standard Digital Trade Rules: The U.S. should continue to advocate for and actively enforce high-standard digital trade rules in international agreements that support U.S. leadership in advanced technologies, and reflect the values of openness, freedom, and non-discrimination. High-standard rules help create a predictable and competitive trading environment, yielding broader market opportunities, job creation, innovation, and economic growth for the U.S. This should include reasserting a strong U.S. voice in E-Commerce-related discussions in the WTO.
- Support Startups and Small and Medium-Sized Enterprises (SMEs): Digital trade policies should support the ability of startups and SMEs to compete globally. Startups and SMEs often lack the resources to navigate complex regulatory environments and bear the costs of data localisation and other restrictive measures. They benefit enormously from simplified and streamlined digital trade rules that allow them to access new markets and scale their operations more effectively.
- Foster Innovation, Economic Growth, and Enhance Competitiveness: Strong digital trade rules enhance the global competitiveness of U.S. businesses by ensuring they can operate on a level playing field. By promoting policies that facilitate digitally-enabled trade, the United States will continue to lead in the development of new technologies and business models. Encouraging digitally-enabled trade spurs U.S. technological advancements in areas such as artificial intelligence, biotechnology, energy production, and other sectors across the economy.
- Consider New Digital rules to Address Old Problems: The proliferation of inconsistent and localised technical requirements in multiple jurisdictions has long hampered the ability of U.S. suppliers to offer digital services on a global scale. The United States should lead in developing rules that incentivise the use of international standards, including for AI.
