The World Trade Organisation (WTO) Secretariat and the Organisation for Economic Co-operation and Development (OECD) have jointly released the report "Economic Implications of Data Regulation: Balancing Openness and Trust". The research highlights the critical role data flows play in today's interconnected world, enabling social and economic interactions. However, with the rise of regulations that either restrict (or impose conditions to) data flows, or that demand localised data storage, the report emphasises the need for a balanced approach that promotes cross-border flows while ensuring trust through adequate protection.

The report identifies the potential economic implications and opportunity costs associated with different types of data flow and data localisation regulations. It concludes that global solutions that promote free data flows paired with appropriate safeguards are likely to yield better economic outcomes for all economies, especially developing ones. The report predicts that this mixed approach could lead to a 3.6% increase in global exports and a 1.77% rise in global GDP. These benefits would be most pronounced for low and lower-middle-income economies, potentially boosting their GDP by over 4%. Conversely, the report warns against 'full fragmentation', where complete restrictions on data flow could cause a 4.5% decline in global GDP and an 8.5% drop in exports. While stringent data regulations pose economic challenges, the absence of regulation is also not advisable, as it could result in diminished trust in business transactions, and a decline in exports and GDP. The report makes the case for the implementation of the notion of Data Free Flows with Trust (DFFT).