Today, Public Policy Solutions published a new report exposing how many countries in the Western Hemisphere are developing complex regulatory regimes to target American technology and telecommunications companies, modeled off European tactics that stifle innovation, prevent competition, and benefit China.
The report, titled “European-Style Digital Hostilities Infecting the Western Hemisphere: America’s Backyard is Becoming a Testing Ground for Regulatory Nightmare” follows an earlier report from Public Policy Solutions, which exposed how the European Union has been one of the worst offenders in non-tariff barriers, championing a campaign of so-called “digital sovereignty,” a protectionist strategy built on discriminatory digital services taxes and sweeping regulations aimed squarely at U.S. tech and telecom.
This new report highlights a number of South American countries that are adopting, or are considering adopting, digital services taxes, network fees, Digital Markets Act-like policies, and other complex, targeted regulations while shielding local competitors. Some of the worst offenders are close trading partners of the United States, including Brazil, Chile, and Colombia. The PPS report lays out key recommendations, including:
- The administration should end tolerance for discriminatory digital policies that disadvantage U.S. companies or hand strategic control to Chinese state-owned enterprises.
- Future trade and investment agreements should block digital taxes or regulations that discriminate against American innovators.
- The U.S. should withhold new partnerships or initiatives until allied governments act to limit CCP-linked access to sensitive data systems.
“For far too long, the European Union has used a protectionist regulatory approach to the United States to use American tech and telecommunications companies as an ATM while shielding their own domestic firms from competition. We now see those same misguided and unfair tactics being adopted by countries in our own backyard. Our latest report highlights the danger of many Latin American countries taking a page out of the European playbook, which drives a wedge in our key economic and security relationships while they invest more heavily in their relationships with an adversarial and unreliable partner: China,” said Joe Grogan, President of Public Policy Solutions and former Assistant to the President for Domestic Policy. “As the United States near-shores our supply chains, it is critical we have confidence that strategic partnerships in our own hemisphere are not compromised by countries granting leverage to Beijing. The Trump administration’s strong and swift response to recent EU investigations into American tech companies should serve as a reminder to our neighbors that removing these non-tariff barriers will be a prerequisite for any country looking to reach a trade agreement with the United States.”
Read the full report: European-Style Digital Hostilities Infecting the Western Hemisphere: America’s Backyard is Becoming a Testing Ground for Regulatory Nightmare
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Public Policy Solutions is an independent 501(c)(4) nonprofit organization dedicated to advancing common-sense public policy solutions that strengthen national security, promote economic opportunity, and empower everyday Americans