Tech7 Joint Statement
International conflicts and supply chain disruptions are a few of the challenges
created by a new political, societal, and economic reality that need to be addressedand overcome collectively by like-minded partners who share the same values, suchas an open market economy, human rights, freedom, equality, and the rule of law.
The G7 Countries should work together more closely than ever to address thechallenges we face today. Regional conflicts around the globe, geopolitical tensions,and climate change as key global challenges are increasing divisions and frictions
among governments and economies. The G7 tech industry (“Tech7”) has promoted
solutions to various challenges through cooperation on technological innovation andwill continue to do so in the future.
For the G7 Takasaki Digital and Technology Ministerial Meeting, we, the Tech7,
propose the following focus areas and recommendations:
1. Facilitation of data flows to sustain and promote recovery of theinternational economy
Cross-border data flows are essential to modern economies and supply chains. The
free flow of data underpins trade, R&D, innovation, and business operations acrosssectors, supporting the development and functioning of the products and services
on which we all depend. The importance of cross-border data flows for internationalinnovation and collaboration has been demonstrated during the fight against the
COVID-19 pandemic. Instructively, the pandemic also demonstrated clearly how thelack of effective frameworks for international data flows can negatively impact thecollaborative work urgently needed to develop and deliver vaccines. International
governmental cooperation is essential to support a robust, reliable, and consistent
approach to cross-border data transfers, which limits fragmentation, challenges,and unwarranted barriers, and reduces uncertainty for everyone.
The concept of Data Free Flows with Trust (DFFT), which was first proposed by
Japan at the World Economic Forum (WEF) and at the G20 in 2019, has been widely
understood through international dialogue so far, but there are still few concrete
results.
The G7 and any international trade regime under negotiation should always include1

provisions on international data flows. The ultimate goal should be for theseagreements not only to support the flow of physical and digital goods but also theflow of data.
Recommendations:-The Tech7 supports the roadmap for cooperation on DFFT formulated at the G7
in 2021 and the action plan for promoting data flows agreed upon at the G7 in2022.

-We look forward to the leadership of the G7 in advancing the ongoing WTO
Joint Statement Initiative on Electronic Commerce (JSI). The JSI negotiations
have the potential to establish new global standards for digital trade thatsignificantly reduce uncertainty for companies in all sectors doing businessacross borders. Particular attention should be paid to:➢Ensuring the free flow of data across borders by combating restrictions on
the global digital economy through harmonization of principles andinternational standards, which balance regulatory autonomy on privacy anddata protection issues with the need for a globally consistent framework.

➢Refraining from imposing unjustified localization measures that require
local storage or processing of data or use of local technology facilities (e.g.
data centers).

➢Continued support for the World Trade Organization (WTO) Moratorium on
Customs Duties on Electronic Transmissions and work towards apermanent moratorium.

Numerous industries rely extensively on theseamless transmission of goods and services electronically, as well as thefree flow of data. These industries encompass a wide range of sectors suchas manufacturing, agriculture, entertainment, software development,
financial services, semiconductors, aerospace, automotive, robotics, andmedical technology.
➢Working together towards setting a common rulebook that prioritizes nondiscriminatory and/or reciprocal approaches with regards to service
providers, based on the location of their headquarters, ownership, or2sector; especially within the G7.
➢Ensuring that governments do not undermine international protections oftrade secrets and do not require the forced transfer of technology as amarket access requirement or take any action that requires access tosource code, algorithms, or cryptographic information.

-Encourage government-to-government and public-private sector dialogue tostrengthen multi-stakeholder engagement in order to enhance interoperability
in the application of data transfer rules and mechanisms, and to build trust
among nations. We expect the G7 to take the initiative to create an internationalframework to operationalize DFFT, work towards practical and trustworthy ways
to ensure the free flow of data while addressing challenges related to privacy,
data protection, intellectual property rights, and security, and enable innovation
and business growth. Tech7 members are ready to provide knowledge,
expertise, and concrete use cases to support this process.

-In addition, the G7 should support building regulatory and institutional dataprotection capacity in developing countries. This will build public trust, increase
understanding of different international approaches to privacy, facilitate
improved international transfer mechanisms, and support cross-border dataflows.

2. Utilization of digital technology in addressing global sustainability
challenges such as climate change and the energy transition
The 2030 United Nations Sustainable Development Goals cover a wide range ofareas, including climate change countermeasures, sustainable production andconsumption, affordable and clean energy, and the realization of an inclusive societythat leaves no one behind. By adopting digital technology globally and accelerating
adoption in the global south, we will be able to provide effective solutions to address
all of these issues. Above all, digital technology and connectivity will play a key rolein attaining climate goals, and in accelerating the rollout of renewable energy,improving energy efficiency, and saving costs for consumers and businesses. G7countries should work in concert to increase digital inclusion around the globe. The
tech industry stands ready to assist the G7 in the implementation of the Partnershipfor Global Infrastructure and Investment.
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We are convinced G7 countries should step up work on the alignment of subsidy
packages for recovery and resourcing. Subsidies should be aligned between G7
members so that no discrimination takes place and common growth strategies aredeveloped amongst partners.
Recommendations:-We ask the G7 to recognize the role of digital technologies, in particularconnectivity, sustainable networks, and digital infrastructure, AI/machinelearning, and cross-border and cloud-based services, in accelerating andsupporting decarbonization. G7 Countries should facilitate the cross-borderdiffusion of digital climate goods and services and address local content
requirements and barriers to investment, trade, and data flow that currently
inhibit technology diffusion. G7 countries should also pave the way formultilateral discipline on subsidies, including for clean technologies in a waythat is compatible with the WTO.

-We call on the G7 to adopt an integrated approach to digitization and green
transformation, that deploys digital technology rapidly across all heavy emitting
sectors. Efforts towards carbon neutrality and improved energy efficiency arebeing promoted on a global level to deal with climate change. In this effort, thevisualization, traceability, and authenticity of carbon data in the supply chain
play a significant role. It is important to ensure security and reliability in orderto analyze data and work to reduce emissions throughout the supply chain
involving

variousentities.

Inotherwords,

advancingthesocietal

implementation of DFFT will greatly contribute to reaching carbon neutrality,
and we look forward to a mechanism that encourages the use of secure andtrusted digital technology in this context.
-We welcome the G7's approach to developing data-sharing agreements to
support greenhouse gas reduction, climate adaptation, and ecosystemmonitoring.

-The global shift to net zero is being hindered by the lack of consistenttaxonomies, and reporting frameworks. There should be equivalence andinteroperability between the different sustainability reporting standards anddisclosure frameworks to avoid ‘compliance shopping’, as well as to provide
4stakeholders (investors, customers, regulators, and the public) with accessible
and credible data on business environmental performance.
-G7 countries should step up their support for international research efforts toback up the rapid deployment of promising AI, digital twins, and emerging
technologies to help mitigate climate change. A global and collaborative
approach is also needed to strengthen support for the development ofinternational standards and strengthen incentives for circular design andbusiness models in electronics.

-G7 Countries should increase investment in R&D funding programs that shouldalign on common objectives and allow more cross-border cooperation andparticipation by increasing funding resources and involving more stakeholders
and organizations.

-

G7 countries should provide aid and support to countries most at risk fromclimate change to adopt digital tools to strengthen their adaptation andresilience to climate risks. Adaptation is hardly possible without the latest
technology, however, countries often lack the skills, connectivity infrastructure,and equipment to deploy and use it.

3. Global dissemination of human-centered AI principles:
The use of AI, including the new generative AI system, is rapidly expanding aroundthe world, and along with other technologies, it is expected to help solve complex
social and environmental challenges facing the modern world, advance productivity,and support growth in a wide range of fields. AI drives the world's economic
productivity and growth, supports people in all aspects, including helping to deliver
public services, and contributes to the development of mature digital markets. TheG7 should share the same understanding of AI's role in building trust and alignaround core principles.
Recommendations:-Collaborating across borders to establish common principles, standards,
governance approaches, and safeguards is critical to ensuring that AI isdeveloped and deployed responsibly. A number of initiatives, including theOECD AI Principles agreed upon in 2019, represent positive progress in this5direction, empowering citizens around the world to see how AI can make apositive difference in people's lives. We hope the G7 will continue to work
together to prove it.
-As the AI ecosystem develops, the role of international industry-driven
standards will need to be considered. AI is a complex and globally evolving topic.
TheG7needs

torespecttheprogressofindustry-led

international

standardization (especially through ISO/IEC) in accordance with WTO rules andshould work towards the creation of a global environment where compliancewith policy and regulatory requirements and interoperability between different
implementations can be achieved without limiting the potential for innovation
by mandating, or restricting the development of, specific technologies.
-Ensuring that citizens and businesses are well educated about the benefits ofAI and emerging technologies, from schools to workplaces to public debates, isa key factor in building trust in AI.

-Furthermore, we recommend the G7 acknowledge the importance of advancing
deeper multi-stakeholder collaboration at a global level on these important
issues and commit to sponsoring work in the Global Partnership on AI. Thisshould focus on shared terminology and taxonomy for trustworthy AI and risk
management, and research how best to use AI, including generative AI, toaddress major societal challenges, and the creation of new channels forparticipation in global dialogues (such as GPAI) for representatives from civilsociety, academia, and industry.

-Tech7 supports the idea of promoting cross-border AI Regulatory Sandboxes totest AI solutions across borders and promote regulatory cooperation andinnovation.

4. Cyber security to secure trust
With the increase in online services and activities, the digitization of industries, andthe increase in connected devices (IoT), the role of cybersecurity has become evenmore important in providing stable networks. Strong cybersecurity measures that
protect systems and data from cyber threats are fundamental to securing the digital
economy and consumer trust. From critical infrastructure to consumer device
6makers, ensuring cyber security has become imperative for all participants in thedigital ecosystem. Risk-based cybersecurity is a prerequisite for unlocking thepotential of data for economic growth and social good in areas such as healthcare.
Yet, each country and region has its own cybersecurity policies and measures (e.g.
EU’s NIS2, cybersecurity certification scheme and NLF, Japan’s Cyber/PhysicalSecurity Framework (CPSF), and IoT Security Safety Framework (IoT- SSF)),
leading to fragmentation and in some cases discrimination against companies fromallies countries. G7 members must align on internationally-recognized cybersecurity
frameworks,measures,andrisk

management

best

practices

toensureinteroperability and data flows among the G7 to address cross-border cyber risks
that may jeopardize the functioning of our economies and societies.
Recommendations:-Harmonization among domestic policies must be achieved to ensure sharedcybersecurity outcomes among trusted nations. It is imperative that G7
countries work together in an integrated approach that promotes open,international, consensus, and risk-based cybersecurity standards to facilitatecross-border collaboration by experts, promote cybersecurity best practices,and facilitate trade and data transfers between trusted partners and avoid any
action that could weaken the availability or security of systems across borders
or hinder effective cooperation amongst companies of G7 members.

-

Promote international standards,

mutual recognition frameworks, and cross-border data flows, which are important to protect and detect cybersecurity risks
and ensure the cybersecurity of IT equipment.
-

Promote voluntary sharing of vulnerability information to help prevent, mitigate,
and respond to cyberattacks.

-

Promote information sharing between law enforcement agencies to counter thetransnational threat of cybercrime.

-

Ensure that government policies do not attempt to insert backdoors or impede
end-to-end protection in order to protect the foundations of a safe internet aswell as fundamental human rights.

7-Promote and expand the industrial control system cybersecurity training for theIndo-Pacific region conducted in Japan, the US, and Europe to cover moreregions and industries. Promoting responsible state behavior in cyberspace
through international fora is essential.

5. Advancing connectivity for new digitalization opportunities for society (6G)
Secure digitalization comes with great potential to transform industries and oursociety. It is also vital to achieving sustainability targets. The mobile network
platform, as defined by 3GPP for 4G and 5G, is already the primary and most reliablemeans of internet access and digital services interaction for most of the world’s
population and constitutes critical infrastructure for the functioning of society. Still,
the future mobile network platform will and must continue to evolve and achieve
further advances in e.g., openness, configurability, capacity, security, and reliability
needs, to meet the demands of being the communication and digitalization
backbone of society.
The Tech7 supports the ambitions to expand the global ecosystem to ensure
affordability for the global south, combined with new possibilities for security. Future
mobile network platforms can continue to create an unprecedented foundation fora sustainable, secure, and more accessible digital economy for consumers,enterprises, and governments.
Recommendations:
G7 members are well positioned to produce ground-breaking research whilefurthering each other's capabilities through increased research cooperation creating
mutual benefits toward leadership ambitions in 6G. G7 economies will benefit
immensely from global, open 6G standardization efforts founded on WTO/TBT
principles for international standards development. The importance of theseprinciples was reconfirmed by G7 in 2021 and 2022.
While initial 6G research is already being performed at national and regional levels,
the G7 should work together with global ambition in the following areas:-Recognize the importance of 6G as an emerging critical technology and theneed for alignment across the G7 on a common 6G research vision. Researchcollaboration should be promoted by building innovation bridges between G78

members’ initiatives, and standardization of 6G should adhere to WTO/TBT
principles for international standards development.
-6G research should be built on an open and interoperable architecture that also
ensures ground-breaking achievements in terms of functionality, performance,security, and energy efficiency, which is also well aligned with the ambitions
stated by G7 digital ministers in 2021.

6. Proactive Cooperation to improve basic and advanced digital skills
In a rapidly changing world, digitization is an issue for all: businesses, governments,and civil society as a whole. Acquisition of basic digital skills at an early age is criticalto the future of all countries and their citizens, and a precondition to narrowing thedigital divide, by upskilling and reskilling citizens. Advanced digital skills in ICT
processes from software development to new information systems design andmanagement, and in several innovative areas, from data security to AI and data
analytics/big data, are essential to accelerate adoption and reap the full benefits of
new digital solutions. Ensuring that young people have access to online resources
to develop digital skills and participate in the global digital ecosystem with theirpeers is essential to equip this and future generations with essential knowledge andexpertise. Collaboration among G7 countries will be critical in affording young
people the full opportunities of digitization and ensuring that vulnerable anddisadvantaged young people are not excluded.
While policies are already in place at national and regional levels to address thedigital skills gap, the G7 should work together globally in the following areas:-

Establish compulsory computer science modules in the curricula of primary andsecondary education.

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Develop shared human resources initiatives specializing in cyber security, data,and AI for universities and polytechnics, and ICT-specific secondary schools.

-Encourage ambitious public-private partnerships, providing advanced digitalskills education opportunities to upskill and reskill existing workforce in areas
such as cybersecurity, data, AI, and the green and digital transition.

-

Encourage

betterrecognition

and9reskilling

validation

ofindustry-led

certification to make labor markets more inclusive and aligned with market
reality.

Encourage life-long learning pathways through a faster uptake ofrelevant schemes.
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Promote STEM education in particular among the female student population.

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