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Open Internet central to U.S. trade policy

Kenneth Corbin | Sept. 30, 2014
Administration officials say they are sympathetic to U.S. cloud service providers' concerns that data-localisation requirements, other restrictive policies and the fallout from Edward Snowden's revelations cut off access to foreign markets.

WASHINGTON -- U.S. cloud providers have ambitious designs on foreign markets, but overseas expansion has been slowed by a number of obstacles, ranging from privacy worries over government surveillance activities to policies that impede cross-border data flows.

In response, top Obama administration officials say they're pressing other nations on open Internet issues as they negotiate trade agreements and working to repair some of the damage done by the revelations of Edward Snowden, the former NSA contractor.

"Certainly this is a very central and important part of the administration's trade agenda," Christine Bliss, assistant U.S. trade representative for services and investment, said Thursday at an event hosted by the Brookings Institution. "We start from the premise that digital trade and information flows are becoming a more and more important source of our GDP."

For Cloud Service Providers, Snowden Fallout Reverberates
For a company such as Google, which has been one of the most vocal critics of the NSA's clandestine intelligence operations disclosed by Snowden, the international fallout has been severe.

Richard Salgado, director of law enforcement and information security at the search giant, notes that several countries have responded to the Snowden revelations by enacting or considering data-localization laws, requiring cloud providers to store citizens' data within their national borders.

"What's interesting about this is that the world of surveillance and the world of trade has now collided," Salgado says.

The idea of concentrating data within a single physical facility, Salgado notes, runs counter to the distributed ethos of the cloud and undermines core benefits of the technology such as redundant storage and low latency rates for data movement.

"All that is lost with data localization laws," he says. "The value of a cloud as we think about it is lost when you break it up into little pieces. You just have lots of sub-clouds."

Bliss ranks localization requirements "in various forms" as the top challenge -- though by no means the only one -- that U.S. trade negotiators face as they hammer out Internet issues in multilateral agreements with their counterparts.

Other items on that agenda include online censorship and Internet freedom, protectionist policies that give a competitive advantage to local companies and interoperability barriers that can arise when countries insist that tech firms adhere to certain technical standards not broadly recognized in the international community.

Those trade priorities certainly aim to protect the interests of U.S. tech firms. In a larger sense, too, they seek to combat what's sometimes described as the balkanization of the Internet -- the concern that, added up, various nations' restrictive policies could have the effect of fragmenting the global network and the commercial activity it supports.


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