A new report by the World Trade Organization (WTO) and the Organisation for Economic Cooperation and Development (OECD) suggests that balancing free global data flows with proper safeguards could significantly benefit economies worldwide.
The report indicates that if open data regimes with safeguards were adopted by all nations, global exports could increase by 3.
6%, and global GDP could grow by 1.77%. Low and lower-middle-income countries would see the highest gains, with their GDP rising over 4%.
However, the report also warns against full fragmentation of data flows, as completely restricting data could result in global GDP losses of 4.
5% and an 8.5% decline in exports. Additionally, while removing data flow regulations may lower trade costs, it could lead to a loss of trust in data exchanges.
The study emphasizes the need for careful regulation to maintain both openness and trust, particularly with measures that mandate data localization, which could disproportionately benefit developing economies. The findings highlight the complexity of data flow regulation and the need for global cooperation to ensure optimal economic outcomes.
