NAFTA Update Will Include Data Privacy Provisions

If we had to pick a buzzword for 2018, privacy could rank pretty high.

Privacy news grabbed plenty of headlines this year. Some of the biggest? The European Union’s new data privacy laws—the General Data Protection Regulation. California jumped on board, too. They broke new ground with their Consumer Privacy Act of 2018.

In some ways, the implications of these laws still haven’t quite been defined. But the passion for data privacy hasn’t wavered.

United in the need for privacy protections

Need more convincing? Check out the new version of the North American Free Trade Agreement (NAFTA), known as the United States-Mexico-Canada Agreement, or USMCA.

Sandwiched in between provisions about milk and cheese, copyrights and currency, the USMCA also includes digital privacy protections. This agreement focuses on removing barriers to digital commerce and ban rules on domestic data storage, but it also aims to “provide for the protection of the personal information.” What does this mean exactly?

What’s outlined in this agreement

USMCA countries agree to adopt some type of legal framework that protects personal data. Each country will be able decide what protections they enact and how to enforce them. They would all make public their consumer protections, including what resources consumers have and what businesses must do to comply.

While the USMCA doesn’t set specific requirements, it does encourage the countries to adopt common, compatible privacy principles. This could include limits on what’s collected and how data is used, common security safeguards, plus additions to transparency and accountability.

What’s still to come

The USMCA has yet to be OK’d by Congress, but it has reportedly already gained wide support from tech industry groups. It is expected to be considered by Congress during their January term. Could your company handle changes to data protection laws? Know for sure with a professional partner like ClearStar.

Contact us today to find out more.

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