Title: A resolution expressing the sense of the Senate that the United States should negotiate strong, inclusive, and forward-looking rules on digital trade and the digital economy with like-minded countries as part of its broader trade and economic strategy in order to ensure that the United States values of democracy, rule of law, freedom of speech, human and worker rights, privacy, and a free and open internet are at the very core of digital governance.
Policy area: Foreign Trade and International Finance

Summary:
This resolution expresses the sense of the Senate that the United States should negotiate and enforce rules on digital trade and the digital economy with like-minded countries as part of its broader trade and economic strategy.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. Res. 727 Introduced in Senate (IS)]

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117th CONGRESS
  2d Session
S. RES. 727

   Expressing the sense of the Senate that the United States should 
negotiate strong, inclusive, and forward-looking rules on digital trade 
   and the digital economy with like-minded countries as part of its 
broader trade and economic strategy in order to ensure that the United 
 States values of democracy, rule of law, freedom of speech, human and 
 worker rights, privacy, and a free and open internet are at the very 
                      core of digital governance.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 28, 2022

Mr. Young (for himself, Mr. Carper, Mr. Cardin, Mr. Crapo, Mr. Cornyn, 
 and Mr. Wyden) submitted the following resolution; which was referred 
                      to the Committee on Finance

_______________________________________________________________________

                               RESOLUTION


 
   Expressing the sense of the Senate that the United States should 
negotiate strong, inclusive, and forward-looking rules on digital trade 
   and the digital economy with like-minded countries as part of its 
broader trade and economic strategy in order to ensure that the United 
 States values of democracy, rule of law, freedom of speech, human and 
 worker rights, privacy, and a free and open internet are at the very 
                      core of digital governance.

Whereas over half of the world's population, totaling more than 5,000,000,000 
        people, use the internet;
Whereas the digital economy encompasses the economic and social activity from 
        billions of online connections among people, businesses, devices, and 
        data as a result of the internet, mobile technology, and the internet of 
        things;
Whereas the Bureau of Economic Analysis found that the digital economy 
        contributed nearly 10.2 percent of United States gross domestic product 
        and supported 7,800,000 United States jobs in 2020;
Whereas the technology-commerce ecosystem added 1,400,000 jobs between 2017 and 
        2021, and served as the main job-creating sector in 40 States;
Whereas United States jobs supported by the digital economy have sustained 
        annual wage growth at a rate of 5.9 percent since 2010, as compared to a 
        4.2 percent for all jobs;
Whereas, in 2020, United States exports of digital services surpassed 
        $520,000,000,000, accounting for more than half of all United States 
        services exports and generating a digital services trade surplus for the 
        United States of $214,000,000,000;
Whereas digital trade bolsters the digital economy by enabling the sale of goods 
        on the internet and the supply of online services across borders and 
        depends on the free flow of data across borders to promote commerce, 
        manufacturing, and innovation;
Whereas digital trade has become increasingly vital to United States workers and 
        businesses of all sizes, including the countless small and medium-sized 
        enterprises that use digital technology, data flows, and e-commerce to 
        export goods and services across the world;
Whereas digital trade has advanced entrepreneurship opportunities for women, 
        people of color, and individuals from otherwise underrepresented 
        backgrounds and enabled the formation of innovative start-ups;
Whereas international supply chains are becoming increasingly digitized and data 
        driven and businesses in a variety of industries, such as construction, 
        healthcare, transportation, and aerospace, invested heavily in digital 
        supply chain technologies in 2020;
Whereas United States Trade Representative Katherine Tai said, ``[T]here is no 
        bright line separating digital trade from the digital economy--or the 
        `traditional' economy for that matter. Nearly every aspect of our 
        economy has been digitized to some degree.'';
Whereas industries outside of the technology sector, such as manufacturing and 
        agriculture, are integrating digital technology into their businesses in 
        order to increase efficiency, improve safety, reach new customers, and 
        remain globally competitive;
Whereas the increasing reliance on digital technologies has modernized legacy 
        processes, accelerated workflows, increased access to information and 
        services, and strengthened security in a variety of industries, leading 
        to better health, environmental, and safety outcomes;
Whereas the COVID-19 pandemic has led to increased uptake and reliance on 
        digital technologies, data flows, and e-commerce;
Whereas 90 percent of adults in the United States say that the internet has been 
        essential or important for them personally during the COVID-19 pandemic;
Whereas United States families, workers, and business owners have seen how vital 
        access to the internet has been to daily life, as work, education, 
        medicine, and communication with family and friends have shifted 
        increasingly online;
Whereas many individuals and families, especially in rural and Tribal 
        communities, struggle to participate in the digital economy because of a 
        lack of access to a reliable and affordable internet connection;
Whereas new developments in technology must be deployed with consideration to 
        the unique access challenges of rural, urban underserved, and vulnerable 
        communities;
Whereas digital trade has the power to help level the playing field and uplift 
        those in traditionally unrepresented or underrepresented communities;
Whereas countries have negotiated international rules governing digital trade in 
        various bilateral and plurilateral agreements, but those rules remain 
        fragmented, and no multilateral agreement on digital trade exists within 
        the World Trade Organization;
Whereas the United States, through free trade agreements or other digital 
        agreements, has been a leader in developing a set of rules and standards 
        on digital governance and e-commerce that has helped allies and partners 
        of the United States unlock the full economic and social potential of 
        digital trade;
Whereas Congress recognizes the need for agreements on digital trade, as 
        indicated by its support for a robust digital trade chapter in the 
        United States-Mexico-Canada Agreement;
Whereas other countries are operating under their own digital rules, some of 
        which are contrary to democratic values shared by the United States and 
        many allies and partners of the United States;
Whereas those countries are attempting to advance their own digital rules on a 
        global scale;
Whereas examples of the plethora of nontariff barriers to digital trade that 
        have emerged around the globe include--

    (1) overly restrictive data localization requirements and limitations 
on cross border data flows that do not achieve legitimate public policy 
objectives;

    (2) intellectual property rights infringement;

    (3) policies that make market access contingent on forced technology 
transfers or voluntary transfers subject to coercive terms;

    (4) web filtering;

    (5) economic espionage;

    (6) cybercrime exposure; and

    (7) government-directed theft of trade secrets;

Whereas certain countries are pursuing or have implemented digital policies that 
        unfairly discriminate against innovative United States technology 
        companies and United States workers that create and deliver digital 
        products and services;
Whereas the Government of the People's Republic of China is currently advancing 
        a model for digital governance and the digital economy domestically and 
        abroad through its Digital Silk Road Initiative that permits censorship, 
        surveillance, human and worker rights abuses, forced technology 
        transfers, and data flow restrictions at the expense of human and worker 
        rights, privacy, the free flow of data, and an open internet;
Whereas the 2020 Country Reports on Human Rights Practices of the Department of 
        State highlighted significant human rights issues committed by the 
        People's Republic of China in the digital realm, including ``arbitrary 
        interference with privacy; pervasive and intrusive technical 
        surveillance and monitoring; serious restrictions on free expression, 
        the press, and the internet, including physical attacks on and criminal 
        prosecution of journalists, lawyers, writers, bloggers, dissidents, 
        petitioners, and others as well as their family members, and censorship 
        and site blocking'';
Whereas the United States discourages digital authoritarianism, including 
        practices that undermine human and worker rights and result in other 
        social and economic coercion;
Whereas allies and trading partners of the United States in the Indo-Pacific 
        region have urged the United States to deepen economic engagement in the 
        region by negotiating rules on digital trade and technology standards;
Whereas the digital economy has provided new opportunities for economic 
        development, entrepreneurship, and growth in developing countries around 
        the world;
Whereas negotiating strong digital trade principles and commitments with allies 
        and partners across the globe enables the United States to unite like-
        minded economies around common standards and ensure that principles of 
        democracy, rule of law, freedom of speech, human and worker rights, 
        privacy, and a free and open internet are at the very core of digital 
        governance;
Whereas United States leadership and substantive engagement is necessary to 
        ensure that global digital rules reflect United States values so that 
        workers are treated fairly, small businesses can compete and win in the 
        global economy, and consumers are guaranteed the right to privacy and 
        security;
Whereas the United States supports rules that reduce digital trade barriers, 
        promote free expression and the free flow of information, enhance 
        privacy protections, protect sensitive information, defend human and 
        worker rights, prohibit forced technology transfer, and promote 
        digitally enabled commerce; and
Whereas the United States supports efforts to cooperate with allies and trading 
        partners to mitigate the risks of cyberattacks, address potentially 
        illegal or deceptive business activities online, promote financial 
        inclusion and digital workforce skills, and develop rules to govern the 
        use of artificial intelligence and other emerging and future 
        technologies: Now, therefore, be it
    Resolved, That it is the sense of the Senate that--
            (1) the United States should negotiate strong, inclusive, 
        forward-looking, and enforceable rules on digital trade and the 
        digital economy with like-minded countries as part of a broader 
        trade and economic strategy to address digital barriers and 
        ensure that the United States values of democracy, rule of law, 
        freedom of speech, human and worker rights, privacy, and a free 
        and open internet are at the very core of the digital world and 
        advanced technology;
            (2) in conducting such negotiations, the United States 
        must--
                    (A) pursue digital trade rules that--
                            (i) serve the best interests of workers, 
                        consumers, and small and medium-sized 
                        enterprises;
                            (ii) empower United States workers;
                            (iii) fuel wage growth; and
                            (iv) lead to materially positive economic 
                        outcomes for all people in the United States;
                    (B) ensure that any future agreement prevents the 
                adoption of non-democratic, coercive, or overly 
                restrictive policies that would be obstacles to a free 
                and open internet and harm the ability of the e-
                commerce marketplace to continue to grow and thrive;
                    (C) coordinate sufficient trade-related assistance 
                to ensure that developing countries can improve their 
                capacity and benefit from increased digital trade; and
                    (D) consult closely with all relevant stakeholders, 
                including workers, consumers, small and medium-sized 
                enterprises, civil society groups, and human rights 
                advocates; and
            (3) with respect to any negotiations for an agreement 
        facilitating digital trade, the United States Trade 
        Representative and the heads of other relevant Federal agencies 
        must--
                    (A) consult closely and on a timely basis with the 
                Committee on Finance of the Senate and the Committee on 
                Ways and Means of the House of Representatives about 
                the substance of those negotiations and the requisite 
                legal authority to bind the United States to any such 
                agreement;
                    (B) keep both committees fully apprised of those 
                negotiations; and
                    (C) provide to those committees, including staff 
                with appropriate security clearances, adequate access 
                to the text of the negotiating proposal of the United 
                States before presenting the proposal in the 
                negotiations.
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