Authority to enter into digital trade agreements

(a) In general The President may, subject to the requirements under section 5, negotiate, enter into, and enforce a digital trade agreement with a country or countries. (b) Considerations In determining whether to enter into negotiations for a digital trade agreement with a country pursuant to subsection (a), the President shall take into account whether the government of the country has— (1) expressed a desire to enter into such an agreement; (2) adhered to and implemented the commitments and obligations under any existing free trade agreements to which that country and the United States are parties; (3) implemented measures to reduce or eliminate unnecessary trade barriers and distorting practices affecting electronic commerce; (4) maintained the rule of law by enacting and enforcing laws and regulations in a clear, publicized, transparent, and nondiscriminatory manner; and (5) adopted and enforced laws that provide adequate and effective protection of intellectual property rights reflecting a standard of protection similar to that found under United States law. (c) Content of digital trade agreements A digital trade agreement shall apply to all sectors of the economy and provide for— (1) nondiscriminatory treatment of digital products and digital services; (2) prohibition of discriminatory taxes on digital services; (3) the free flow of data across borders and the prohibition of data localization requirements; (4) frameworks for the secure transfer and sharing of industrial data and other sensitive data that bolster data security, including through the promotion and protection of end-to-end encryption; (5) the protection of consumers engaged in electronic commerce, including the promotion of interoperability mechanisms, such as the Cross-Border Privacy Rules of the Asia-Pacific Economic Cooperation, or successor frameworks, to facilitate international data transfers while ensuring the protection of the privacy of personal information; (6) prohibition of forced transfer or disclosure of source code, algorithms, cryptographic technology, trade secrets, and other proprietary technology as a condition of market access; (7) cooperation to advance interoperable, risk-based frameworks for the development, deployment, and cross-border trade in emerging digital technologies, including artificial intelligence and quantum computing; (8) cooperation in addressing cybersecurity threats and adherence to risk-based approaches to mitigating cybersecurity threats, including sharing of information and coordination on incident response and best practices based on consensus standards; (9) prohibition of customs duties on electronic transmissions, including on content transmitted electronically; (10) promotion of voluntary, international standards for digital technologies and services; (11) promotion of alignment on export controls, sanctions, and investment review mechanisms that impact digital trade; (12) greater transparency in domestic regulation of services; (13) promotion of risk-based approaches to government procurement of hardware and software to support secure digital infrastructure; (14) other provisions that, in the judgment of the Trade Representative, would advance the national interests of the United States with respect to digital trade; and (15) exceptions to the provisions described in paragraphs (1) through (14) to allow for the protection of legitimate public policy objectives and national security.