In the Headlines
August 28, 2018

U.S.-Mexico Trade Pact Aims to Allow Banks to Move Data

Bloomberg Law

Despite the fact that data localization requirements have increased globally in recent years, the preliminary U.S.-Mexico trade deal would prevent both countries from requiring financial institutions to store data locally, as long as regulators can reach the information they need.

Global Cybersecurity and Privacy Policy & Regulation Chair Norma Krayem told Bloomberg Law that "the prohibition in the U.S.-Mexico deal "makes a clear delineation to protect the banking sector from unwanted and risky data localization requirements."

Ms. Krayem added that the prohibition may also serve as a warning to nations that have imposed their own data localization laws, which are viewed by some banks and companies as trade barriers that can inhibit their growth into new markets. The data localization prohibition is a "sign to other nations that the U.S. will no longer stand for unwarranted access into U.S. companies systems," she said.

READ: U.S.-Mexico Trade Pact Aims to Allow Banks to Move Data

Reproduced with permission. Published Aug. 28, 2018. Copyright 2018 by The Bureau of National Affairs, Inc. (800-372-1033)

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