The Computer & Communications Industry Association (CCIA) has submitted comments to the Office of the U.S. Trade Representative (USTR) regarding foreign digital trade barriers and their impact on U.S. exporters and economic competitiveness. These comments were part of a review conducted by the USTR in response to two presidential memoranda: the America First Trade Policy Presidential Memorandum and the Reciprocal Trade and Tariffs Presidential Memorandum.
The CCIA's submission emphasizes the negative effects that priority digital trade barriers in key markets have on U.S. firms, advocating for engagement and negotiations to address these issues.
Included in the comments is an annex featuring a factsheet from a forthcoming study by the CCIA Research Center. This study estimates that compliance with European Union digital regulations could cost large U.S. technology companies an average of $430 million annually per company, amounting to $2.2 billion across five major companies each year. Additionally, these regulations could lead to potential financial exposure due to litigation and non-compliance, ranging from $4.3 billion to $12.5 billion annually per company.
Jonathan McHale, Vice President of Digital Trade at CCIA, stated: “Over the past decade, a rising tide of digital trade barriers has imposed significant financial harm on U.S. firms, undermining their ability to compete in foreign markets." He further emphasized that these measures restrict cross-border trade in digital products and services, impacting modern economic foundations and U.S. competitiveness.
McHale urged that as "USTR identifies priority issues for engagement in the coming months," obstacles to digital trade should be prioritized for negotiation efforts aimed at removing these barriers to promote fair international trade.
