US-Japan Trade Deal Should Promote Joint Cybersecurity Efforts, Says ITI

Any U.S.-Japan trade agreement should “prohibit” customs duties on digital products and electronic transmissions, commented the Information Technology Industry Council in docket USTR-2018-0034. The Office of the U.S. Trade Representative sought feedback to help shape the Trump administration’s negotiating posture (see 1811270002). It’s “tempting” for governments to consider levying duties or other “blanket fees” on digital goods and services, said ITI. Banning those “unnecessary” costs will eliminate burdens on digital trade and “serve as a vital model for future U.S. trade agreements" everywhere, it said. ITI wants the USTR to use negotiations with Japan to promote joint "cybersecurity cooperation efforts,” and “both countries should affirm that risk-based, consensus-driven, and interoperable cybersecurity approaches are more effective at combatting digital threats than prescriptive, mandatory, and sometimes conflicting regulatory regimes that are emerging" worldwide. ITI also urges the USTR to seek commitments from Japan to allow into the country for testing and demo purposes tech devices that don't yet have regulatory authorization, it said. "Currently, Japan does not allow for the importation of any devices that do not hold regulatory authorizations for these purposes. Adoption of measures similar to FCC provisions allowing imports of products for testing or demonstration will give U.S. firms equal opportunities in Japan’s market."