BSA | The Software Alliance welcomes today’s announcement of a US-Japan Digital Trade Agreement. Together with the US-Mexico-Canada Agreement (USMCA), today’s agreement reflects a growing movement among innovative and open economies to safeguard the future ability to transfer data across borders, which is critical to ensure access to best-in-class cloud computing, artificial intelligence, and other software solutions. Enterprises and workers across industry sectors depend upon software and cross-border data transfers to operate around the world; today’s agreement enhances predictability and opportunities for US and Japanese enterprises and workers across the digital economy. The agreement also sets an important precedent for future US and Japanese trade negotiations, including at the WTO.

As reflected in the USMCA, the most advanced US digital trade agreements protect core features of the digital environment – cross-border data transfers, transparent access to government information, consumer protection, consumer choice, privacy, and cybersecurity. They also prohibit trade barriers and practices such as data localization mandates, forced disclosure of source code and algorithms, customs duties on electronic transmissions, and discrimination against digital products.

“Today’s agreement is an excellent outcome and a positive step forward for our digital economy,” said Victoria Espinel, President and CEO of BSA | The Software Alliance. “BSA applauds the dedication and hard work of US and Japanese negotiators over the past year to arrive at this result. Forward-looking digital trade rules are key to job creation, economic competitiveness, and technological innovation in software, artificial intelligence, smart devices and other emerging technologies. We now need to build on the momentum of the US-Japan agreement. That includes bringing the USMCA, and its strong digital trade provisions, into force.”