The Nature, Evolution and Potential Implications of Data Localisation Measures
This paper examines the nature and evolution of data localisation measures and their
impact on business activity. It highlights that data localisation measures are growing
and increasingly restrictive. By early 2023, 100 such measures were in place across
40 countries, with more than two-thirds combining local storage requirements with
flow prohibition, the most restrictive form of data localisation. Insights gained
from businesses operating in the e-payments, cloud computing, and air travel sectors
suggest that data localisation can have unintended consequences. It not only increases
operating costs, with implications for downstream users, but can also lead to increased
vulnerabilities to fraud and cybersecurity risks, and reduced resilience to unexpected
shocks. While international regulatory efforts have largely taken place through regional
trade agreements (RTAs), this paper calls for continued monitoring of the regulatory
environment with a view to informing efforts to agree on global rules that take into
account legitimate public policy objectives while avoiding excessive fragmentation,
especially through discussion at the WTO under the Joint Initiative on e-commerce.
Available from November 10, 2023
In series:OECD Trade Policy Papersview more titles