Digitrade Digest #57
China call IPEF a ‘tool of coercion’, Twitter to pay fine for using data for targeted ads and more
Indo- Pacific Economic Framework
From Singapore to Malaysia and Philippines, Asean’s interest in Biden’s IPEF a signal to China it wants better ‘balance of power’ in region
scmp: Jayant Menon, a senior fellow at the ISEAS-Yusof Ishak Institute in Singapore, said many Association of Southeast Asian Nations members had signed on even though the proposed deal was “less than what they might have hoped for”.
“(They) are clearly keen to support the effort by the US to re-engage with the region after the disastrous episode with the Trump administration,” Menon said, referring to former US president Donald Trump’s decision to exit the Trans-Pacific Partnership (TPP) in 2017.
Tan See Seng, research adviser at the S. Rajaratnam School of International Studies (RSIS), said the US’ withdrawal from the TPP was “an educational moment for the Asian region”.
Noting that American ambivalence towards the pact was bipartisan, Tan said Washington’s economic disengagement from the region had enabled China to “grow its economic footprint in Asia unhindered”.
“Against this backdrop, I think Asian countries see the IPEF as America’s attempt to regain a foothold in the region, not just economically, but more crucially, politically,” Tan said. “Participation in the IPEF is a signal to China that some Asian states much prefer a balance of power and influence in the Indo-Pacific region.”
China’s foreign ministry spokesman Wang Wenbin on Wednesday described the IPEF as an attempt to disrupt regional cooperation and a tool of coercion.
Earlier in May, Chinese Foreign Minister Wang Yi accused the US of sowing division in the region, while on Monday he underlined China’s commitment to economic development in the Asia-Pacific region.
Asia
Singapore, Japan ink agreements on promoting start-ups, digital transformation for governments
CNA: Another Memorandum of Cooperation on digital government transformation was signed by Singapore’s Senior Minister of State for Communications and Information and Minister-in-charge of GovTech Janil Puthucheary, and Japanese Minister for Digital and Minister-in-charge of Administrative Reform Karen Makishima.
The agreement involves exchanging information about digital government frameworks and best practices, covering topics such as digital identities, artificial intelligence (AI) and cloud services, said GovTech.
“Such exchanges will benefit the design and development of digital services for our citizens and businesses,” GovTech added.
For instance, Singapore and Japan will explore the mutual recognition of verified credentials for their residents’ digital identities, which will “benefit digital trade and people-to-people flows between both countries”, GovTech said.
The agreement also builds on existing areas of cooperation, including an MOC between both countries’ communication ministries on the digital economy, AI, cybersecurity and information and communication technology.
DEPA
Minister Ng announces Canada’s request to join Digital Economy Partnership Agreement
Miragenews: A novel trade policy tool initiated by New Zealand, Chile, and Singapore (the DEPA Parties), DEPA is a flexible arrangement designed to address the fast-evolving digital economy issues of interest to businesses, workers and consumers, such as artificial intelligence and digital identities.
Joining DEPA would further secure Canada’s position as a leader in the global digital economy, and gives it a seat at the table for international rulemaking. This will help Canadian businesses by providing clear rules on digitally enabled trade and promoting new economic opportunities that will benefit everyone.
The agreement is aligned with Canada’s international trade policy objectives, including encouraging e-commerce as a means of facilitating and diversifying international trade and investment.
In March 2021, the Government of Canada launched public consultations on Canada’s possible accession to the DEPA. Industry stakeholders, NGOs, provinces and territories, and traditionally under-represented groups including women, Indigenous peoples and micro, small and medium-sized enterprises, provided valuable input, leading to this request.
Following today’s announcement, Canada will engage with the DEPA Parties to establish a Working Group for Canada’s accession to the DEPA.
India
Joint position paper between India, U.K. for data protection
TheHindu: The paper features a series of recommendations for both governments to consider as part of the ongoing India-U.K. Free Trade Agreement negotiations, as per a Nasscom statement.
The paper would inform the governments on their efforts to reform domestic regimes on personal data protection, cross-border data transfers, and encourages bilateral discussions towards securing a data adequacy agreement, it further said.
The paper also includes recommendations for both governments to commit to the protection of personal information via adequate and comprehensive legal regimes, including a dedicated digital trade chapter in the proposed FTA, according to the apex body.
Such a chapter may cover several topics, including protection of privacy and personal information, international data flows, paperless trading, online consumer protection, cooperation on fintech, data innovation and artificial intelligence.
Shivendra Singh, Vice President & Head Global Trade, NASSCOM said: “Technology has taken up the centre stage and will play a significant role in doubling the bilateral trade between India and U.K.. Given digital revenues will be the lynchpin of this growth story, it is important that we are able to build convergence on data and digital.’‘
Regarding domestic data protection and transfer regimes, the paper would offer suggestions on the specific areas for both countries to prioritise as they finalise their respective domestic legal regimes on data protection and transfers.
Big Tech
Twitter to pay $150M for violating FTC privacy order
os: Twitter has agreed to pay $150 million for using users' security data to target ads, violating a 2011 order by the Federal Trade Commission, the agency announced along with the Department of Justice Wednesday.
Driving the news: The complaint, filed by the DOJ on behalf of the FTC, stated that starting in 2013 through 2019, Twitter asked users for their phone numbers or emails for account security, but did not tell users the information would be used by advertisers to target messages.
The complaint says this behavior also violated the U.S.-EU privacy shield, the former data-sharing agreement between the U.S. and Europe.
The 2011 FTC order barred Twitter from misrepresenting its privacy and security practices to users.
What they're saying: “Twitter obtained data from users on the pretext of harnessing it for security purposes but then ended up also using the data to target users with ads," FTC Chair Lina Khan said in a release. "This practice affected more than 140 million Twitter users, while boosting Twitter’s primary source of revenue."
“The $150 million penalty reflects the seriousness of the allegations against Twitter, and the substantial new compliance measures to be imposed as a result of today’s proposed settlement will help prevent further misleading tactics that threaten users’ privacy," Associate Attorney General Vanita Gupta said in the same release.