In this globalization era, cross—border data flow regulations impact international trade in services regulated by the WTO’s General Agreement on Trade in Services (GATS). Upon the regulatory autonomy, the European Union (EU)‘s “adequacy” model emphasizes the role of its laws in setting global data transfer standards, while Vietnam’s recent legislation on personal data protection and cyber security introduces complexities in the name of public concerns. The cross—border data regulation autonomy is also highlighted in the European Union—Vietnam Free Trade Agreement (EVFTA), where Article 8.1(2) affirms each party’s right to legislate for legitimate policy goals. Thus, this situation could lead to inconsistent application of data transfer measures, potentially resulting in trade disputes or retaliatory measures from trade partners. For Vietnam, it may fail to secure EVFTA trade benefits due to not meeting EU adequacy requirements, turning the EVFTA into a Trojan horse that pressures Vietnam to adopt GDPR standards with its nascent data protection laws. Through an analysis of WTO principles and cases, along with a detailed examination of relevant EVFTA provisions, this chapter suggests that to maximize the benefits of their agreements, both member States must implement minimally restrictive trade measures and balance data regulatory autonomy and international trade commitments.

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The Quest of Balancing Data Regulatory Autonomy with International Trade Commitments: Assessing the General Agreement on Trade in Services and the European Union — Vietnam Free Trade Agreement

  • Ngo Nguyen Thao Vy,
  • Nguyen Xuan My Hien

摘要

In this globalization era, cross—border data flow regulations impact international trade in services regulated by the WTO’s General Agreement on Trade in Services (GATS). Upon the regulatory autonomy, the European Union (EU)‘s “adequacy” model emphasizes the role of its laws in setting global data transfer standards, while Vietnam’s recent legislation on personal data protection and cyber security introduces complexities in the name of public concerns. The cross—border data regulation autonomy is also highlighted in the European Union—Vietnam Free Trade Agreement (EVFTA), where Article 8.1(2) affirms each party’s right to legislate for legitimate policy goals. Thus, this situation could lead to inconsistent application of data transfer measures, potentially resulting in trade disputes or retaliatory measures from trade partners. For Vietnam, it may fail to secure EVFTA trade benefits due to not meeting EU adequacy requirements, turning the EVFTA into a Trojan horse that pressures Vietnam to adopt GDPR standards with its nascent data protection laws. Through an analysis of WTO principles and cases, along with a detailed examination of relevant EVFTA provisions, this chapter suggests that to maximize the benefits of their agreements, both member States must implement minimally restrictive trade measures and balance data regulatory autonomy and international trade commitments.