Data Free Flow with Trust (DFFT)

Subject: Science and tech

Context:

• India is not in a position to accept the concept of Data Free Flow with Trust (DFFT) as it is neither well understood nor is comprehensive enough in the legislation of many countries.
• In view of the huge digital divide among countries, there is a need for policy space for developing countries which still have to finalise laws around digital trade and data.

Concept:

• A major international initiative on data flows, the Osaka Track, was launched by heads of governments under Japan’s G20 leadership in 2019.
• This paper develops a framework for ‘data free flow with trust’ – the key underlying concept of the Osaka Track.
• It maps a multi-dimensional architecture for international cooperation on data flows, between governments, as well as involving business, with recommendations to increase levels of governance trust and build openness through trade rules and other tools.
• Powered by data flows, digitalization has become crucial for the seamless functioning of economies and societies.
• Countries, however, can have concerns that once data moves abroad it will not be treated the same as at home. Jurisdictions do not trust each other to act appropriately on data governance.
• Motivated by objectives such as privacy, security, access to data, and industrial policy, national regulations often restrict the cross-border movement of data, resulting in fragmented and sometimes contradictory rules.