#SubDCCP members listen on as Chairman Latta delivers opening remarks
WASHINGTON, DC – The Subcommittee on Digital Commerce and Consumer Protection, chaired by Rep. Bob Latta (R-OH), held a hearing today examining cross-border data flow policies and the impact of digital trade barriers on U.S. businesses.
Kicking off the hearing, Chairman Latta highlighted the far reaching economic effects, stating, “The Internet, data, and digital trade now support economic growth in all sectors of the U.S. economy. U.S. industry around the country— whether in manufacturing, retail, energy, and health care— rely on “cross-border data flows” to run their businesses. This technological phenomenon also supports local businesses and smaller enterprises including entrepreneurs and app developers.”
In his prepared testimony, Dean Garfield, President and CEO of the Information Technology Industry Council, discussed how digital trade can help small businesses grow, “U.S. small businesses are thriving on the digital platforms created by technology companies. For example, according to a study by eBay, the cost of trading on eBay’s online marketplace fell by 41 percent between 2005 and 2009, three times faster than the decline in costs for traditional trade. Over 90 percent of eBay’s U.S. businesses trade across borders. More than 80 percent of small businesses on eBay reach five or more markets. Amazon, for instance, now hosts some 2 million third-party sellers. In 2014, Facebook estimated that 50 million small and medium-sized enterprises are on its platform, up from 25 million in 2013.”
Victoria Espinel, President and CEO of BSA | The Software Alliance, noted the importance of the E.U.-U.S. Privacy Shield in promoting digital trade, “The Privacy Shield, which replaced the U.S.-EU Safe Harbor Framework, strengthens transatlantic trade by facilitating data transfers between the United States and the EU that are critical to digital services affecting a wide range of industries.”
For more information on today’s hearing, including a background memo, witness testimony, and archived webcast, click HERE.