New U.S. Chamber Study Reveals Potential Impact of Proposed General Data Protection Regulation

WASHINGTON, D.C. – A new study released by the U.S. Chamber of Commerce today reveals that the proposed General Data Protection Regulation currently being debated in the EU could have serious economic consequences and could undermine potential gains from the proposed Transatlantic Trade and Investment Partnership (TTIP). The report, commissioned by the U.S. Chamber and prepared by the European Centre for International Political Economy (ECIPE), finds that if the proposed regulation fully disrupted EU-U.S. data flows, EU GDP could contract by as much as 0.8% to 1.3%, and EU exports to the U.S. could drop by more than 6%.

“The EU and the U.S. enjoy the world’s largest and most successful commercial relationship,” said Peter Chase, the U.S. Chamber’s vice president for Europe. “The Internet is the backbone of our $1 trillion trade relationship.  With the proposed transatlantic trade pact, we have the opportunity to build on this foundation to boost growth and jobs, especially in the services sector.  But success depends on our governments taking the right steps to enable the legitimate free flow of digital goods and services, which businesses of all sizes and sectors need to thrive.”

“In today’s global economy, it is essential that our governments continue working together to enhance the compatibility of regulations and standards,” said Adam Schlosser, senior manager of the Chamber’s Center for Global Regulatory Cooperation. “When it comes to the Internet, this report underscores the importance of putting clear, compatible privacy regimes in place that safeguard consumers without unduly impeding the global information flows and data exchanges that fuel innovation.”

Among the ECIPE report’s other key findings:

•EU services exports to the United States could drop by 6.7% if cross-border data flows are seriously disrupted.
•As goods exports are highly dependent on efficient provision of services (up to 30% of manufacturing input values come from services), EU exports of manufactured goods to the United States could decrease by up to 11%. In such case, the export benefits produced by the TTIP are more than eliminated.
•While the potential positive effects from the creation of a ‘one-stop shop’ are impossible to accurately predict, consumption of goods and services would need to increase by 13% EU-wide in order to overcome the increased administrative burden.
 

The U.S. Chamber of Commerce is the world’s largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations.