Bangladesh Deal Shows How India Can Lose Digital Sovereignty to US
Bangladesh has allowed free transfer of data to the US, agreed not to impose digital services tax while cooperating with the US to regulate the trade in national security sensitive technologies and goods
Chennai: If the US goes by the template set for the trade deals with its partners, including Bangladesh, India will end up losing its data and digital sovereignty. Bangladesh has allowed free transfer of data to the US, agreed not to impose digital services tax while cooperating with the US to regulate the trade in national security sensitive technologies and goods.
As per the trade deal signed by the two countries, Bangladesh shall not impose digital services taxes, or similar taxes, that discriminate against US companies in law or in fact.
Bangladesh shall facilitate digital trade with the United States, by refraining from measures that discriminate against US digital products; ensuring the free transfer of data across trusted borders for the conduct of business; and collaborating with the United States to address cybersecurity challenges.
If Bangladesh enters into a new digital trade agreement with a country that jeopardizes essential US interests, the United States may, if consultations with Bangladesh fail to resolve its concerns, terminate the trade agreement and reimpose the applicable reciprocal tariff rate set on April 2, 2025.
Bangladesh shall cooperate with the United States to regulate the trade in national security sensitive technologies and goods through existing multilateral export control regimes. It will harmonize Bangladesh’s export control regime with U.S. export controls on such technologies and goods and ensure that Bangladeshi companies do not backfill or undermine these controls.
Bangladesh shall not impose customs duties on electronic transmissions, including content transmitted electronically from the US.
Bangladesh shall cooperate in a manner consistent with, and permitted by, applicable requirements of domestic law, with the United States with a view to restricting transactions that would be violations of U.S. sanctions or export controls if they occurred in the United States or by a US person.
Bangladesh shall cooperate in providing information about inbound investment with a view toward increasing transparency and experience sharing with the United States on economic and national security matters.
If the United States determines that Bangladesh is cooperating to address shared national and economic security issues, the United States may take such cooperation into account in administering its laws and regulations pertaining to export controls, investment reviews, and other measures.
“The possibility to impose similar controls on India are visible in the statement on the interim framework of the India-US trade deal, though in a cryptic way. India will have to be cautious about this and not let the US take away India’s data and digital security,” said Ajay Srivastava, founder, GTRI.
The joint statement had said that India will have to address “discriminatory or burdensome practices and other barriers to digital trade”. Coming under pressure, India had scrapped the digital services tax last year.