Cape News

At a recent Ways and Means Trade Subcommittee hearing, both Republican and Democrat members voiced concerns about the Biden-Harris Administration's approach to digital trade rules. The United States Trade Representative's decision in 2023 to abandon long-standing digital trade rules has led to what some members describe as a surrender of America's technological leadership.

Witnesses at the hearing discussed how this shift has allowed other nations, including China, to enact regulations that disadvantage American technology companies. These policies could potentially harm U.S. jobs and aid China's efforts to promote censorship and control on the internet.

Robert Atkinson, President of the Information Technology and Innovation Foundation (ITIF), spoke with Trade Subcommittee Chairman Adrian Smith (NE-3) about the implications of reduced U.S. engagement in digital trade negotiations, particularly in developing regions like Africa.

Rep. Smith highlighted previous negotiations with Kenya: "Two years ago, we as a country engaged with Kenya, launching negotiations for what is called The Strategic Trade and Investment Partnership. So at that time, USTR highlighted digital trade as a key priority in the negotiations. However, digital trade has kind of dropped off of that discussion."

Atkinson responded by emphasizing Africa's strategic importance: "I think we have to think about Africa as a battleground...by walking away from digital trade engagement, I think we’re opening the door to the Chinese."

The lack of enforcement against unfair practices by other nations was another focal point. Rep. Darin LaHood (IL-16) questioned Atkinson on potential regulatory challenges posed by European Union policies.

Atkinson pointed out: "There’s been no pushback...So I think absent getting tough, they’re just not going to respond."

Dr. Olivia Walch, CEO of Arascope, also testified on the importance of protecting intellectual property within U.S. trade policy: "It’s what gives us a head start globally...if we had to disclose our models...that would be just a no go."

The hearing underscored calls for stronger enforcement mechanisms and continued support for robust digital trade rules that protect American interests.