US tells diplomats to lobby against foreign data sovereignty laws

In a bold move, the Trump administration has instructed U.S. diplomats to actively oppose foreign initiatives aimed at regulating how American technology firms manage data belonging to international users. This directive stems from concerns that data sovereignty laws could hinder the development of artificial intelligence services and technological advancements, as reported by Reuters based on an internal diplomatic communication. The cable, issued by U.S. Secretary of State Marco Rubio, warns that such regulations could disrupt worldwide data exchanges, elevate costs and cybersecurity threats, restrict cloud and AI services, and expand governmental oversight in ways that may infringe on civil liberties and promote censorship. It encourages diplomats to challenge what it describes as “unnecessarily burdensome regulations,” particularly those mandating data localization. In addition to opposing these laws, the cable instructs diplomats to monitor proposals advocating for data sovereignty and to support the Global Cross-Border Privacy Rules Forum. This international organization aims to foster secure global data transfers through standardized data protection and privacy certifications. This directive comes at a time when nations worldwide are intensifying their scrutiny of how major technology and AI companies handle citizen data. The European Union has been at the forefront, implementing regulations like GDPR, the Digital Services Act, and the AI Act, which aim to limit the power of tech giants over personal data and ensure accountability. Historically, the Trump administration has resisted such regulatory efforts, and this latest order underscores the government’s commitment to supporting U.S. AI enterprises. As of now, the U.S. State Department has not provided a comment on this issue.