Realizing Data Free Flow with Trust: Strategies for Turbulent Times

Abstract

Cross-border data flows are vital to the global digital economy yet approaches to data governance remain fragmented. Artificial intelligence-driven digital transformation, geopolitical tensions and geoeconomic competition are fundamentally reshaping global data governance. Coordinated legal and regulatory frameworks remain a cornerstone to operationalizing Data Free Flow with Trust (DFFT). However, noting the challenges facing multilateralism in today’s context, the G7 can focus on leveraging existing regional frameworks and agreements, and adopting risk-based approaches to promote interoperability. Policy approaches should aim to strike a balance between protecting national and citizens’ interests and fostering innovation, ensuring that security, privacy and free data flows can coexist to drive economic growth and development. Sharing the benefits of digitalization inclusively and equitably is critical to ensure the long-term success of DFFT, as most developing economies and micro, small and medium-sized enterprises lack the capacity and resources to meaningfully engage in cross-border data flows.