U.S. Trade Representative Michael Froman should prioritize dismantling...

pushing initiatives that undermine the U.S. ability to compete in the European market, such as an EU-only information sharing cloud and an EU information technology conglomerate, said the lawmakers. Protectionist EU IT policies threaten the $2.1 trillion in U.S. investment in the EU, the lawmakers said. “This mutually beneficial relationship would not be possible without constant streams of data between the EU and the U.S,” said legislators. “Halting cross-border data flows will, by many measures, simply stifle cross-border trade.” Congressional High Tech Caucus co-chairs Michael McCaul, R-Texas, and Doris Matsui, D-Calif., led the letter. The lawmakers listed issues of concern both in and out of the U.S. After issuing a decree that requires Brazilian federal government agencies use only federally provided telecom and IT services, Brazilian President Dilma Rousseff is pursuing data localization legislation, said the lawmakers. “Meanwhile, some German officials have called on the EU to review Safe Harbor, the only mechanism through which U.S. and European companies can exchange information in compliance with the laws of the nations in which they conduct business” (CD Oct 24 p10), said members of Congress. “Canada has increased the number of federal government Requests for Proposals (RFPs) invoking a ‘national security exemption’ and requiring IT vendors who bid for projects to keep all or portions of data within Canada.” U.S. Lawmakers recently introduced the Digital Trade Act of 2013 in an effort to prevent or eliminate cross-border Internet data flow restrictions by establishing negotiating principles for digital trade issues in future U.S. trade agreements.