The International Trade Commission should highlight foreign countries' data localization laws as a top barrier to digital trade in a forthcoming report, telecom and tech officials said Tuesday during an ITC hearing. The commission began an investigation in February at the Office of the U.S. Trade Representative's request into developments in the digital trade market and how laws in the U.S. and “key foreign markets” are affecting digital trade. The ITC is examining laws in the EU, Brazil, China, India, Indonesia and Russia. The commission is expected to release the first of three reports on the investigation by Aug. 29, with the other two reports to be released in 2018 and 2019.
The Office of the U.S. Trade Representative highlighted concerns about other countries' adoption of data localization laws and other barriers to digital trade, in its annual National Trade Estimate report Friday. Other identified digital trade barriers included restrictions on “digital products, Internet-enabled services, and other restrictive technology requirements,” USTR said. The office included a digital trade barriers section on every country included in the NTE. BSA|The Software Alliance praised USTR for including digital trade barriers. “Eliminating barriers that prevent BSA members and other US companies from providing their products and services around the world is critical,” said BSA President Victoria Espinel in a statement.
The U.S. Chamber of Commerce urged Senate Finance Committee Chairman Orrin Hatch, R-Utah, and ranking member Ron Wyden, D-Ore., in a Wednesday letter to swiftly report U.S. Trade Representative nominee Robert Lighthizer out of committee (see 1703220015) for a Senate floor vote. “Mr. Lighthizer has led a distinguished career as a trade policy practitioner and has a reputation as a staunch advocate for American industry,” said Executive Vice President and Head-International Affairs Myron Brilliant. “He will represent the nation’s interests well as he works with international partners and addresses trade challenges at the negotiating table and before the World Trade Organization.” A committee spokesman said the committee hasn’t scheduled a vote on whether to clear Lighthizer, and the panel will announce it 48 hours in advance.
U.S. Trade Representative nominee Robert Lighthizer is “deeply concerned” about counterfeiting and piracy in China, he told the Senate Finance Committee in writing after a recent confirmation hearing (see 1703150027). If confirmed, Lighthizer said, he will use all relevant trade policy tools, including the Special 301 Report and “new procedures” provided under the Trade Facilitation and Trade Enforcement Act, to address Chinese counterfeits.
A bipartisan Senate Finance Committee staff memo we obtained highlighted U.S. Trade Representative nominee Robert Lighthizer's past representations of foreign entities, representations in pending trade matters, and tax documentation as "issues ... appropriate to bring to the attention of Committee Members in advance of the hearing." His confirmation hearing was Tuesday. While at Skadden Arps, Lighthizer represented Brazil in 1985, potentially requiring a legislative waiver to secure Senate confirmation (see 1701030014). Lighthizer on Jan. 17 initially said in an answer to a questionnaire he hadn't represented, advised or otherwise aided a foreign government or political organization in a trade matter. He revised it Jan. 27 to mention his involvement with Brazil. The Republican majority committee staff said it doesn't view this as clearly constituting a representation within the meaning of the 1974 Trade Act. At the hearing, Lighthizer said USTR's role has been to take the lead in sorting out the executive branch's overall approach to trade policy, and he expects to work collaboratively with Commerce Secretary Wilbur Ross and White House trade leaders including National Economic Council Director Gary Cohn. “I expect it to work the way it has,” he testified. “I expect it to be very collaborative.” Lighthizer pledged to strongly assert U.S. intellectual property rights, in response to questions by Chairman Orrin Hatch, R-Utah. The U.S. maintains a competitive advantage in innovation and science, and weak IP enforcement would compromise that, as U.S. IP rights holders are wrestling with slow and inefficient patent protection, IP theft, and insufficient property protection overseas, Lighthizer said. Hatch also expressed concern the Obama administration brought no IP cases to the World Trade Organization. Lighthizer said he expects to bring “as many actions as are justified both to the WTO and in our bilateral agreements. This will be a point of emphasis." Sen. Debbie Stabenow, D-Mich., asked if President Donald Trump’s businesses around the world might pose conflicts of interest in trade discussions. Lighthizer said learning any deep knowledge of the Trump family’s business dealings around the world would “absolutely not” help him do his job as USTR. “I don’t want to know anything about it,” Lighthizer said.
The Senate Finance Committee plans a hearing at 10 a.m. Tuesday to consider the nomination of Robert Lighthizer as U.S. Trade Representative, the committee announced. “In order for Congress to have a strong say in the Trump Administration’s trade policy agenda, we need to confirm the USTR as soon as possible,” said Chairman Orrin Hatch, R-Utah. Hatch said he looks forward to hearing how Lighthizer plans to protect American intellectual property rights overseas. Hatch last month said his committee would draft waiver legislation to set the stage for Lighthizer’s confirmation, because he represented the Brazilian Ministry of Industry and Commerce for the Skadden Arps law firm more than 15 years ago (see 1701030014). The Trade Act of 1974 prevents anyone who represented other governments on trade issues with the U.S. from serving as USTR or deputy USTR.
The Computer & Communications Industry Association, Internet Association and other industry groups again focused on concerns about EU member states’ adoption of ancillary copyright laws and some countries’ failure to comply with international norms on intermediary liability protections, during testimony Wednesday on the Office of the U.S. Trade Representative’s 2017 Special 301 proceeding. It's aimed at identifying countries and issues that threaten enforcement of U.S. entities’ IP rights. Ancillary copyright laws, seen as a tax on use of news snippets, and less robust intermediary protections that could be barriers to U.S. platforms were issues industry groups repeatedly raised to USTR last month in comments (see 1702100044).
President Donald Trump's Assistant-Economic Policy and National Economic Council Director Gary Cohn adds to NEC staff as special assistants to the president: DJ Gribbin, ex-Macquarie Capital, for infrastructure policy; Grace Koh, ex-aide to House Communications Subcommittee, technology, telecom and cybercecurity policy; Ashley Hickey Marquis, ex-Glover Park Group, economic policy and chief of staff; and Andrew Quinn, ex-Office of the U.S. Trade Representative, for areas including international trade; among other personnel ... Sullivan & Cromwell elects to partnership Renata Hesse, ex-DOJ Antitrust Division and ex-FCC ... Rep. Jim Langevin, D-R.I., hires Anita Baffoni, WPRO-AM/FM Providence, Rhode Island, as communications director ... Leaving FTC is Justin Cole, who was director, Office of Public Affairs.
Stakeholders are continuing to scrutinize a Domain Name Association (DNA) proposal for a voluntary third-party mechanism akin to ICANN’s trademark-centric uniform dispute resolution policy (UDRP) that would address copyright infringement through the use of domain names. Its proponents tell us many details for the mechanism remain in flux. DNA proposed what it calls a “Copyright Alternative Dispute Resolution Policy” (Copyright ADRP) this month in its rollout of recommendations via the Healthy Domains Initiative (see 1702080085). The Electronic Frontier Foundation and Internet Commerce Association criticized HDI for including the Copyright ADRP proposal among its recommendations (see 1702100054).
The International Trade Commission will undertake the first of three reviews on business-to-business and business-to-consumer digital technologies, including on digital exports that might encounter trade barriers overseas, the agency said in a Friday notice. As part of its first of three planned investigations, the ITC scheduled a hearing April 4. The commission will accept requests to appear at the hearing through March 21, pre-hearing briefs and statements through March 23, post-hearing briefs and statements through April 11, "all other written submissions for the first report" through April 21, and will submit the first of three digital trade reports to the Office of the U.S. Trade Representative on Aug. 29, the commission said. Pursuant to a Jan. 13 request to the ITC by then-U.S. Trade Representative Michael Froman (see 1701180032), the agency anticipates releasing the second report by Oct. 28, 2018, and the third report by March 29, 2019.