Paper short abstract:

The data economy is increasing its importance and Japan has made a great diplomatic effort to position itself among the countries that shape the regulation of electronic commerce and the flow of data. This paper will examine the Japanese concept of “Data Free Flow with Trust”.

Paper long abstract:

The data economy is increasing its importance every day. Japan has made a great diplomatic effort to position itself among the countries that will shape the future of the regulation of electronic commerce and the free flow of data. This paper will examine the possibilities of success of the Japanese concept of “Data Free Flow with Trust” (DFFT), presented by Shinzo Abe in the World Economic Forum in 2019 and reinforced through the Osaka Track in 2020 in the G20 Meeting. Japan called for international rules fit for the digital age that carefully protect sensitive data but allow productive data to flow across borders. They support free commerce but with safeguards for cybersecurity, intellectual property and privacy.

The paper will look into the role of Japan as a conveyor of the Joint Initiative at the WTO on e-commerce and also its negotiating position in its recent bilateral and multilateral treaties regarding digital trade. The approach of Japan will be compared with that of other relevant players such as China that defends data localization and forced transfers of technology and how both approaches had been reconciled in the Regional Comprehensive Economic Partnership. This will be compared with other stricter treaties signed recently by Japan such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the U.S.-Japan Digital Trade Agreement, where the option for un unimpeded free flow of data is clear.

The question is if Japan has enough leverage to attract other Asian countries towards its position and is able to find compromises that can be interesting for other mayor players such as the EU while keeping the United States happy.