Washington — USTR has announced sanctions against France that will remain suspended until France starts collecting duties under the French digital services tax. This follows USTR’s conclusion in the Section 301 investigation into the French tax that the tax discriminated against US firms. Several countries are in various stages of implementing digital taxes targeted at…
The administration has characterized the Trans-Pacific Partnership (TPP) Agreement as “an ambitious, next-generation, Asia-Pacific trade agreement.” It is being negotiated with Australia, Brunei, Chile, Malaysia, New Zealand, Peru Singapore and Vietnam — with Canada and Mexico as set to join.
CCIA supports the speedy completion of a high-quality “21st century” Trans-Pacific Partnership Agreement. A 21st-century agreement will contain provisions that permit the smooth functioning of the industry of the 21st century — the Internet. The Internet is visibly revolutionizing the way businesses — including small and medium enterprises — function. Without a smoothly functioning Internet, the negotiated provisions of TPP will not yield the desired gains for TPP citizens.
First, TPP must include balanced intellectual property rules. An intellectual property regime can allow technological progress only if it appropriately balances the competing interests between encouraging investment and enabling information access. Because the international trade regime has generally lacked flexible IP provisionis to promote innovation, it is necessary to modernize the IP provisions of the aging trade framework to be consistent with Internet and high-technology innovation.
Second, TPP should promote the free flow of information online, recognizing that blocking bits at the border is as much as affront to international free trade as blocking physical goods. The ability of U.S. businesses to operate effectively on a global scale depends fundamentally on open information flows. When foreign governments block online information, when businesses are impeded for using the Internet to reach international markets, when secure corporate communications are not assured, the collateral damage is done to U.S. exports and U.S. jobs.