Ahead of the U.S. House of Representatives Ways and Means Subcommittee on Trade’s hearing, "Protecting American Innovation by Establishing and Enforcing Strong Digital Trade Rules," global tech trade association ITI’s President and CEO Jason Oxman underscored the critical importance digital trade has in the modern economy. The hearing, which comes as the U.S. marks one year since the Office of the United States Trade Representative (USTR) withdrew support for key digital trade provisions and positions at the World Trade Organization (WTO), is a welcome opportunity for Congress to examine the state of U.S. digital trade policy.

“For the U.S. to remain a global leader in innovation, it needs a strong digital trade agenda that enables businesses of all sizes and in all sectors to reach customers in every corner of the globe and enhance productivity. Still, despite broad and bipartisan feedback, USTR has opted to cede U.S. digital trade leadership time and time again. We hope tomorrow’s hearing will motivate the United States to change its course by demonstrating the myriad ways technology’s movement across borders facilitates job growth, bolsters supply chain resiliency, and enhances access for consumers. We thank the Ways and Means Committee for examining this crucial economic issue and call on lawmakers to utilize their legislative and oversight tools to ensure the United States gets back on the right track,” said Oxman.

In the last year, the U.S. has retreated from its longstanding support for digital trade through:

- Withdrawal of U.S. support for long-standing digital trade proposals and positions in negotiations for the WTO Joint Statement Initiative (JSI) on Electronic Commerce, which aims to develop global digital trade rules to support innovation and economic growth for decades to come;the proposed JSI agreement, which was supported by more than 80 WTO members, does not include outcomes on data flows, data localization, or source code disclosure – all areas where the U.S. withdrew support.

- Failing to conclude a trade agreement in the Indo-Pacific Economic Framework for Prosperity (IPEF), while ignoring digital trade entirely in ongoing negotiations with Taiwan and Kenya.

- Deprioritizing digital trade in the 2024 National Trade Estimate Report, which lists policies abroad that discriminate against U.S. companies, increase business costs, divert trade and investment, undermine security, and discourage innovation.