Academic Article- by Cheena Khanna
INTRODUCTION
Data free flow with trust' (DFFT) – which aims to enable cross-border free flow of data while addressing concerns about privacy, data protection, intellectual property rights, and security – has been a priority of global digital policy coordination since the G20 first raised it during Japan's 2019 presidency. It depicts a multi-dimensional architecture for international data-flow collaboration between governments and businesses, as well as proposals for increasing governance confidence and increasing openness through trade norms and other measures.
Digitalization, which is driven by data flows, has become critical for the smooth operation of businesses and society. Countries, on the other hand, maybe concerned that data sent overseas would not be treated the same way it is treated at home. Jurisdictions lack trust in one another when it comes to data governance. National policies typically prohibit the cross-border transfer of data, resulting in fragmented and often inconsistent restrictions, which are motivated by objectives such as privacy, security, data access, and industrial policy. The Osaka Track, a major worldwide endeavor on data flows, was launched by heads of government in 2019 under Japan's G20 leadership. The primary underlying notion of the Osaka Track is 'data free flow with confidence,' and this article proposes a framework for it. It depicts a multidimensional architecture for international data-flow collaboration between governments and businesses, as well as ideas to improve governance trust and openness through trade norms and other mechanisms.
More and more governments are attempting to gain greater control over the data generated and retained within their borders. Many countries, for example, are beginning to impose restrictions on cross-border data transfers and require that the information be maintained inside their boundaries. Countries, on the other hand, consider human rights, security, and other factors that are distinct from commercial and economic interests when deciding whether or not to manage data created within their borders. As a result, boosting DFFT will necessitate not only the development of trade norms addressing free flow but also the establishment of interoperable systems that take into consideration the particular conditions of each nation. Digitalization's worth cannot be measured just in terms of money. Merely as ideas like “Industry highlight the digital revolution of industry, “Society underlines how digitalization might confront presently concerns and bring in broader transformation, just rather apply to industrial production. From hunter-gatherer, agricultural, and industrial civilizations to today's information-based arrangements, our societies have progressed. Humanity is currently embracing a new "smart" society with sustainable and inclusive socioeconomic systems powered by big data analytics, artificial intelligence, the Internet of Things, and robots, with digital and physical places intimately connected.
Digitalization has also resulted in societal difficulties tied to new technology, potentially exposing vulnerable populations to new hazards. To address these issues while still delivering benefits, policymakers must adopt a human-centered approach to data governance, as advocated by philosophies such as governance innovation. 24 Domestic regulators and international collaboration will never be able to keep up with the rate of innovation, thus future rules must be flexible and risk and result-driven. In addition, new technologies may generate greater results and compliance than sanctions-based strategies.
CONCLUSION
According to Commerce and Industry Minister Piyush Goyal, India is unable to adopt the notion of Data Free Flow with Trust (DFFT) since it is neither generally understood nor broad enough in many nations' legislation. Given the vast digital divide between nations, policy space is required for emerging countries that have yet to finalize legislation governing digital trade and data. The minister was speaking during the G-20 Trade and Investment Ministers' virtual meeting. India, like many other developing nations, is still establishing a framework for its data protection and e-commerce regulations, according to Goyal. "Moreover, the present policies on which DFFT is based, such as unrestricted cross-border data flow, are woefully inadequate to satisfy our data access issues." This has the potential to exacerbate the digital divide."
Commerce and Industry Minister Piyush Goyal
The minister stated that improvements to the World Trade Organization and the multilateral trading system must maintain basic values and fundamental principles such as non-discrimination, inclusivity, acknowledgment of special and differential treatment, and consensus-based decision-making. Furthermore, it is critical to recognize the critical role of small stores in maintaining food chains and crucial supplies in order to enable people and businesses to survive the COVID-19 epidemic and in the future.
Governments should negotiate trade agreements (particularly in the WTO's ongoing JSI discussions) that include strong data-related responsibilities while allowing for substantial regulatory authority in the public interest. Complementary standards on online consumer protection and personal data might boost systemic confidence in the digital economy and build trust between parties. Governments and large industry players should form public-private partnerships to assist SMEs on how to use digital technology to boost growth and expand their market reach.
REFERENCE
https://www3.weforum.org/docs/WEF_Paths_Towards_Free_and_Trusted_Data%20_ Flows_2020.pdf
https://www.ksgindia.com/study-material/news-for-aspirants/25920-data-free-flowwith-trust.html