International Mutual Recognition
for Achieving DFFTMarch 29, 2023

Satoru Tezuka
Keio University1

Table of Contents
1. Significance of DFFT
2. Concept of International Mutual Recognition
3. Showcase at G7 Digital Ministerial Meeting
4. Global Expansion of International Mutual Recognition
5. Summary21. Significance of DFFT Summary of Late Prime Minister Abe's 2019 speech at Davos Start a forum for discussion focused ondata governance, under the roof of theWorld Trade Organization (WTO) Establish a system to implement DFFT
(Data Free Flow with Trust), which willbe the most important issue for thenew economy driving the 4th industrial
revolution and Society5.0
 Create a forum for discussion among
the US, EU, Japan, India, and theAfrican countries that are making great
developments, and share theirsuccesses along with the efforts ofother countries
Source: https://www.kantei.go.jp/jp/98_abe/statement/2019/0123wef.html

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1. Significance of DFFT
 Promoting a new international framework to realize DFFT Institutional Arrangement for Partnership (IAP)
Government

IAP

PrivatesectorItems for consideration• Trust• Security• PrivacyAcademia To realize DFFT, the government, private sector, and academia
will work together to identify items for consideration, prioritize
them, and discuss them on an ongoing basis
 Results will be presented at the G7
Source: https://journal.meti.go.jp/p/24752/

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1. Significance of DFFT Realization of "T" in DFFT In Society5.0 and Digital Transformation (DX), good, up-to-date,accurate and rich real data is the most important source of value andthe most important ingredient to support Digital Trade Good, up-to-date, accurate and rich real data needs to be distributedwith trust
 Digital Trade needs to be realized on a global scale For data to be distributed with trust, Trust Service Infrastructuresuch as Electronic Authentication and Electronic Signatures isrequired to prevent tampering of data and spoofing of senders andreceivers
 Trust Service Infrastructure based on International MutualRecognition is needed to realize Digital Trade on a global scale
5Table of Contents
1. Significance of DFFT
2. Concept of International Mutual Recognition
3. Showcase at G7 Digital Ministerial Meeting
4. Global Expansion of International Mutual Recognition
5. Summary62. Concept of International Mutual Recognition
 Digital Trade is conducted bilaterally Japan-EU Digital Trade

EU-Japan Economic Partnership Agreement:
enters into force on February 1, 2019

 Japan-US Digital Trade

US-Japan Digital Trade Agreement:
promulgated and published December 13, 2019

 Japan-UK Digital Trade

UK-Japan Economic Partnership Agreement:
Effective January 1, 2021

Data is distributed with Trust

72. Concept of International Mutual Recognition
 “Electronic Authentication” and “Electronic Signature” arewritten in common
Japan-EU

Digital TradeJapan-USDigital TradeJapan-UK

Digital Trade

Definitions(a)"electronic authentication" means the process or act of verifying the identity of aparty to an electronic communication or transaction or ensuring the integrity of anelectronic communication;(b) "electronic signature" means data in electronic form which are attached to or
logically associated with other electronic data and fulfil the following requirements:
Definitions(h) “electronic authentication” means the process or act of verifying the identity of aparty to an electronic communication or transaction and ensuring the integrity ofan electronic communication;(i) “electronic signature” means data in electronic form that is in, affixed to, or
logically associated with an electronic document or message and that may be used
to identify the signatory in relation to the electronic document or message andindicate the signatory’s approval of the information contained in the electronic
document or message;
Definitions
 facilitating parties to a particular electronic transaction to mutually determine theappropriate electronic authentication methods or electronic signature for theirtransaction
 facilitating the use of electronic authentication or an electronic signature inelectronic transactions in compliance with the applicable legal requirements
 encouraging the use of interoperable electronic authentication and electronicsignatures82. Concept of International Mutual Recognition
 Bilateral Electronic Authentication and Electronic Signaturearrangements
 Cyberspace consists of Data, People, Organizations and Things Electronic Signatures prevent tampering of data Electronic Authentication prevent spoofing of People, Organizations
and Things
Prevent tampering

Data

EntityEntityPrevent spoofing

People

DataPeople

Organizations

Organizations

ThingsThingsTrust Services Infrastructure

Electronic Authentication, Electronic Signature
92. Concept of International Mutual Recognition
 To achieve Digital Trade on a global scale, it is necessary to
expand from bilateral to multilateral

BilateralPrevent tampering
Prevent spoofing

MultilateralPrevent tampering
Prevent spoofing10

2. Concept of International Mutual Recognition
DFFT is realized with Three-Layered Architecture Trust Application Service Layer: Input/Output of data and use of data Trust Data Distribution Layer: Securely exchange data with entities Trust Service Layer: Trust by preventing tampering and spoofingInternational Mutual Recognition of Trust Service Infrastructure

Trust Application
Services

Trust Application
Services

Trust Data
Distribution

Trust Data
Distribution

Trust Services
Infrastructure

Trust Application Services

Trust Services
Infrastructure

Trust Data Distribution

Trust Services Infrastructure
Electronic Signatures,Electronic Authentication

112. Concept of International Mutual Recognition
 Equal footing of Electronic Signature and Electronic Authentication ineach country is necessary to achieve International Mutual Recognition

 Legislation and Accreditation are negotiated among governments Technology standard and Trust Anchor Chain to be promoted among private
sectors
ItemEUUK

USJapanPublic Personal
Identification Law
Executive Order Commercial
13526
Registration Law
Electronic SignatureAct

1 LegislationeIDAS

2 Accreditation

Two steps of EU
FederalCommission,
National bodygovernment
Member StatesNational bodyUK-eIDAS

3Technology
standard

ISO, ETSIISOISO, NIST

ISO, JIS

4

Tust Anchor
Chain

LoTL, MS TL

UK TL

FBCA

Government BCA

LoTL: List of Trusted List
TL: Trusted List

FBCA: Federal Bridge Certification Authority
BCA: Bridge Certification Authority

12Table of Contents
1. Significance of DFFT
2. Concept of International Mutual Recognition
3. Showcase at G7 Digital Ministerial Meeting
4. Global Expansion of International Mutual Recognition
5. Summary13

3. Showcase at G7 Digital Ministerial Meeting The G7 Digital Ministerial Meeting (4/29,30 at Takasaki) inJapan is a golden opportunity to realize International MutualRecognition
 Seize the golden opportunity of the G7 to rapidly accelerateInternational Mutual Recognition of Trust Service Infrastructures
 Demonstrate business use cases using Trust Services
Infrastructure at the G7 Digital Ministerial Meeting Contribute to the realization of Digital Trade Trust that are moving
to global

Source: https://www.g-messe-gunma.jp/

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3. Showcase at G7 Digital Ministerial Meeting DFFT EU-Japan technical pilot is being promoted

 Visited EU Commission at the end of November and started pilot
project in mid-December
 Scoping Document was finalized in February
 Weekly general meeting and technical meetings are being held
alternately
DFFT EU-Japan technical pilot for the cross-border validationof electronic seals
1. Context and background
1.1 Data Free Flow with Trust
1.2 Demonstration use case: Managing CO2 emission dataexchange
2. Scope of the EU-JP pilot on mutual recognition pilot forelectronic seals in the context of DFFT
2.1 Objective
2.2 Assumptions regarding the legal context
2.3 Scope of the technical pilot
2.4 Respective roles of the EC and Japan in the technicalpilot
2.5 Timeline, resources and deliverables
2.6 Project structure and contact points
Annex I - Detailed use case scenario
Change log153. Showcase at G7 Digital Ministerial Meeting Demonstration based on the Scoping Document

 Application: Carbon Neutral and CO2 Emission Management

Electricity
consumption

Manufac-turing
Results

Trust
Application
ServiceLayer

Order
Information

Application:
CO2 Emission
Management

Trust
Data Space
Data
Distribution
Layer
TrustServiceLayer

Parts
Data

Electricity
consumption

Manufac-turing
Results

Parts
Data

Order
Information

Application:
CO2 Emission
Management

Data SpaceConnector

Trust Services Infrastructure
Electronic Signatures
Electronic Authentication

Connector

Trust Services InfrastructureElectronic Signatures
Electronic Authentication

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Table of Contents
1. Significance of DFFT
2. Concept of International Mutual Recognition
3. Showcase at G7 Digital Ministerial Meeting
4. Global Expansion of International Mutual Recognition
5. Summary17

4. Global Expansion of International Mutual Recognition Japan, the host country of G7, plans to hold a showcase ofInternational Mutual Recognition in cooperation with EU atthe G7 Digital Ministerial Meeting India, the host country of G20, has requested G20 members
to include International Mutual Recognition as a theme for
the G20 Digital Ministerial Meeting India is making the same request to Japan Japan, host of G7, cooperates with India, host of G20, toachieve International Mutual Recognition Japan, which belongs to both G7 and G20, will contribute as acoordinator Achieve Global expansion of International Mutual Recognition18

4. Global Expansion of International Mutual Recognition
 Begin with International Mutual Recognition in G7 members

19

4. Global Expansion of International Mutual Recognition
 Expand International Mutual Recognition from G7 members
to G20 members

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4. Global Expansion of International Mutual Recognition
 Global expansion of International Mutual Recognition to G7,G20, ASEAN and other countries

G7
7 countries and 1 region
G20
19 countries and 1 region
ASEAN 10 countries

MENA: Middle East / North Africa

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Table of Contents
1. Significance of DFFT
2. Concept of International Mutual Recognition
3. Showcase at G7 Digital Ministerial Meeting
4. Global Expansion of International Mutual Recognition
5. Summary22

5. Summary Summary of this presentation
 Significance of International Mutual Recognition Mutilateral Trust Service Infrastructure achieves DFFT Japan and EU pilot project plans Showcase at G7
Digital Ministerial Meeting Significance of Side Event Speech from EU Commission
 EU-Japan pilot project Speech from India
 Discussing about International Mutual Recognition
at G20 Digital Ministerial Meeting Further step
 Global expansion of International Mutual Recognition23

5. Summary G7 will continue their discussions to confirm and agree
on the importance of International Mutual Recognition
on Trust.
 G7 will continue their efforts through pilot projects forInternational Mutual Recognition of Trust services.
 G7 will promote the demonstration and implementationof Trust, utilizing the Institutional Arrangement forPartnership (IAP) as an effort to achieve DFFT.

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