By: Eitan Morris
Globalization and technology have led to increases in opportunity and connectivity for individuals and businesses around the globe. In response to the increasingly porous nature of technological barriers, many countries are attempting to exert control through regulation. A common method of regulation is through the implementation of data localization legislation. Data localization is the requirement that data about a country’s citizens or residents be collected, processed, and/or stored on servers physically located in-country. Placing limitations on the cross-boarder transfer of data can have consequences across economic sectors. For these reasons, data localization regimes have been called into question. One key example is Canadian provincial data localization laws which have become a hotly contested element in the e-commerce section of the current North American Free Trade Agreement (NAFTA) renegotiations.