Сross-border data transfer in the context of digital transformation of foreign economic policy

The interdependence between the development of innovations and cross-border data transmission has become a new challenge for the foreign economic policies of countries worldwide. This interdependence has brought regulatory issues to the forefront, pertaining to national sovereignty, data confidentiality, national security, and other internal values and interests. As a result, countries are faced with the development of relevant legislation. However, the approaches taken by different countries do not always align with each other or with the approaches of international institutions, international trade agreements, and more. In the absence of concerted efforts by all stakeholders, including countries, international organizations, companies, and others, to regulate cross-border data transmission, this lack of alignment will continue to grow. This article aims to analyze various approaches, including those of the European Union, the United States, international institutions, concerning the legal regulation of cross-border data transmission (including the protection of personal data during such transmission) within the framework of implementing foreign economic policies, international agreements, and more. The analysis seeks to identify shortcomings and develop proposals for their mitigation. The analysis reveals that Ukraine and other countries considering data protection issues face a crucial choice between regulatory approaches, such as those of the European Union and the United States. This choice significantly affects the potential for cross-border data transmission, international trade, and innovative development, particularly for global companies operating in these regions. Countries that implement the General Data Protection Regulation of the European Union or similar regulatory approaches are obliged to adhere to this legislation to protect the rights of citizens and avoid sanctions from the European Union and other regulators. However, this implementation can be costly and time-consuming for both companies and countries, potentially negatively impacting international trade relations and innovative development. To avoid conflicts between different regulatory approaches, it is essential to consider the rules of international organizations, such as the World Trade Organization and the Organization for Economic Co-operation and Development, and develop a unified strategy for data exchange. The article underscores the need to improve the General Data Protection Regulation continuously to strike a balance between data protection and innovation support. This includes developing data classification based on sensitivity, using technical data anonymization measures, among other considerations. Additionally, constant monitoring and updates of these regulations are critical for adapting to new technological realities and challenges.

cross-border data transfer, innovation, foreign economic policy, personal data, artificial intelligence, digital transformation.