U.S. Trade Representative Katherine Tai has dropped longstanding U.S. digital trade demands in World Trade Organization talks in order to give Congress room to regulate big tech firms, her office said on Wednesday.
The U.S. is withdrawing proposals made in 2019 by the Trump administration insisting that WTO e-commerce rules allow free cross-border data flows and prohibit national requirements for data localization and reviews of software source code.
The official said U.S. policy must take into account regulatory objectives, "balancing the right to regulate in the public interest and the need to address anticompetitive behavior in the digital economy," according to a transcript seen by Reuters. USTR spokesman Sam Michel said many countries were examining their approaches to data and source code, and how trade rules can affect them.
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