US diplomats instructed to oppose foreign data sovereignty laws

n internal State Department cable directs US diplomats to push back against data localisation and sovereignty laws abroad and to promote alternative cross-border data frameworks.

US diplomats instructed to oppose foreign data sovereignty laws

An internal US State Department cable, seen by Reuters, instructs American diplomats to actively oppose foreign data sovereignty and data localisation measures and to advocate for a more assertive US position on international data policy.

The directive, signed on 18 February, argues that data localisation requirements and sovereignty-focused regulations risk disrupting global data flows, increasing costs, and imposing burdensome compliance obligations. It also states that such measures could hinder the operation of cloud computing and artificial intelligence services.

Diplomats are encouraged to promote the Global Cross-Border Privacy Rules Forum as an alternative mechanism that facilitates cross-border data transfers while incorporating privacy safeguards.

The move reflects ongoing tensions between differing regulatory approaches to data governance, particularly in relation to Europe’s emphasis on digital sovereignty and stricter privacy frameworks.

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