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Capability Brief

Data Flows & Digital Trade Governance

The capacity to move data across borders on the nation's terms: the adequacy arrangements, certification mechanisms and digital-trade rules that keep the intangible economy flowing.

Indicators
3
Leaders
10placeholder ratings
Like it
8capabilities
Developments
20
Definition

What Data Flows & Digital Trade Governance is, and how it is measured

The capacity to move data across borders on the nation's terms: the adequacy arrangements, certification mechanisms and digital-trade rules that keep the intangible economy flowing.

Indicators

  • Data flow arrangements in force
  • Digital services trade restrictiveness score
  • Cross-border data transfer volume
Leaders

The nations that lead in Data Flows & Digital Trade Governance

Placeholder

These ratings stand in until the capability is rated.

#NationRating
1ChinaAAA
2FranceAA
3United StatesAA
4South KoreaA
5AustraliaA
6SpainA
7United KingdomBBB
8DenmarkBBB
9IsraelBB
10NorwayBB
Related

The capabilities most like Data Flows & Digital Trade Governance

Likeness, from 0 to 1, as the Atlas measures it.

Developments

How Data Flows & Digital Trade Governance came to be

  • Geopolitical
  • Governance
  • Security
  • Technology
  • Economy

Historical Developments

Oldest first
  1. 1866 · 160 years ago

    The transatlantic telegraph cable created the first durable cross-border data link

    A permanent cable between Ireland and Newfoundland cut transatlantic communication from roughly ten days by ship to minutes, establishing the undersea-cable infrastructure model that still carries the great majority of international data traffic today.

  2. 1980 · 46 years ago

    The OECD issued the first international guidelines on data flows

    The Guidelines on the Protection of Privacy and Transborder Flows of Personal Data sought to prevent privacy rules from becoming unjustified barriers to trade, shaping data protection law across member states for decades.

  3. 1995 · 31 years ago

    The European Union restricted data transfers to countries without adequate protection

    Directive 95/46/EC introduced the concept of adequacy, barring transfers of personal data to third countries unless their laws provided a comparable standard of protection, a model later inherited by the GDPR.

  4. 1998 · 28 years ago

    WTO members agreed a moratorium on customs duties for electronic transmissions

    The Declaration on Global Electronic Commerce committed members not to impose customs duties on data sent across borders electronically, a standstill renewed at every ministerial conference until it lapsed in 2026.

  5. 2011 · 15 years ago

    APEC economies launched the Cross-Border Privacy Rules system

    Asia-Pacific Economic Cooperation members created a voluntary certification scheme allowing companies to demonstrate compliance with common privacy standards across participating economies, the forerunner of today's Global CBPR Forum.

  6. 2013 · 13 years ago

    Edward Snowden's disclosures exposed the scale of US digital surveillance

    Leaked documents revealing mass collection of communications by US intelligence agencies undermined trust in transatlantic data transfers and gave momentum to data localisation and sovereignty arguments worldwide.

  7. 2015 · 11 years ago

    Russia required personal data on citizens to be stored domestically

    Amendments to Russia's data protection law obliged operators collecting personal data on Russian citizens to use databases located within the country, becoming one of the earliest strict data localisation regimes and a model since echoed elsewhere.

  8. 2017 · 9 years ago

    China introduced security assessments for cross-border data transfers

    The Cybersecurity Law required operators of critical information infrastructure to store certain data domestically and pass a security assessment before sending it abroad, establishing the foundation of China's data sovereignty regime.

  9. 2018 · 8 years ago

    The European Union brought the General Data Protection Regulation into force

    The regulation set conditions for transferring personal data outside the European Economic Area, including adequacy decisions and standard contractual clauses, and became the reference model copied or adapted by dozens of countries worldwide.

  10. 2020 · 6 years ago

    The Court of Justice of the EU struck down the EU-US Privacy Shield

    The ruling found that US surveillance law failed to offer EU citizens adequate redress, invalidating the second transatlantic transfer mechanism after Safe Harbour and forcing companies onto standard contractual clauses with supplementary safeguards.

Recent Developments

Most recent first
  1. March 2026 · 5 months ago

    The WTO let the e-commerce moratorium lapse after members failed to agree at MC14

    Ministers meeting in Yaoundé, Cameroon failed to extend the 1998 moratorium on customs duties for electronic transmissions, which lapsed on 30 March 2026 after members could not agree a text.

    • A 66-member coalition pledged to keep transmissions duty-free
  2. January 2026 · 7 months ago

    China opened a third route for cross-border data certification

    Measures jointly issued by the Cyberspace Administration of China and the market regulator took effect on 1 January 2026, adding certification alongside security assessment and standard contracts as compliance pathways for transferring personal information abroad.

    • The Cyberspace Administration of Shanghai published cases of illegal transfers
  3. 2026 · this year

    Amazon Web Services committed 5.3 billion US dollars to a Saudi cloud region

    AWS confirmed plans to open a dedicated cloud infrastructure region in Saudi Arabia during 2026, part of a wider build-out by hyperscale providers responding to data residency and localisation requirements across the Gulf.

  4. 2026 · this year

    South Korea's Personal Information Protection Commission ordered a wallet operator to delete data transferred to Alipay

    The regulator found that a domestic digital wallet provider had sent the personal data of around 40 million users to the Chinese payments firm Alipay without adequate legal grounds, and ordered deletion of the data and associated algorithms.

  5. November 2025 · 9 months ago

    India finalised rules allowing data transfers to any country by default

    The Digital Personal Data Protection Rules confirmed that cross-border transfers are permitted unless a destination is placed on a government negative list; by mid-2026 no such list had been published, leaving the regime largely open.

  6. September 2025 · 11 months ago

    The EU General Court upheld the EU-US Data Privacy Framework against a legal challenge

    Judges dismissed a challenge seeking annulment of the European Commission's adequacy decision for transatlantic transfers, though an appeal to the Court of Justice followed, leaving open a third framework collapse after Safe Harbour and Privacy Shield.

  7. September 2025 · 11 months ago

    Nigeria brought a tiered adequacy test for data transfers into force

    The Data Protection Commission's General Application and Implementation Directive set out approved transfer instruments, including standard contractual clauses, for businesses moving personal data out of the country under the 2023 Data Protection Act.

    • Kenya issued its own cross-border transfer regulation
  8. June 2025 · last year

    The Global Cross-Border Privacy Rules Forum brought its interoperable certification system into live operation

    The Global CBPR and Privacy Recognition for Processors systems began certifying companies against a shared set of transfer standards across member economies, with around 100 companies covering more than 2,000 entities certified at launch.

    • Nigeria joined as the forum's first African associate
  9. June 2025 · last year

    Vietnam enacted its first standalone data protection law

    The Personal Data Protection Law, passed in June 2025, tightened obligations on cross-border transfer impact assessments and barred processing based on loosely defined legitimate interest, extending rules first set out in an earlier decree.

  10. February 2025 · last year

    The African Union adopted eight annexes to the AfCFTA Digital Trade Protocol

    The annexes covered cross-border data transfers, digital identity, payments and cybersecurity, giving substance to a protocol signed in 2024 that still awaits the 22 ratifications needed to enter into force continent-wide.

A timeline taken from the English Wikipedia article “Transborder data flow” (CC BY-SA 4.0), the only source the Atlas consulted for it.