Data As Trade Currency: Reconciling Cross-Border Data Flows With National Sovereignty

Abstract

This article examines data’s transformation into a trade currency and the legal tensions between cross-border data flows and national sovereignty. Using doctrinal and comparative analysis, it evaluates regulatory models and trade frameworks, finding that harmonized standards and cooperative governance can balance economic integration with sovereignty, privacy, and security concerns. The rapid expansion of the digital economy has transformed data into a critical economic asset, often referred to as “data as trade currency.” While cross-border data flows fuel innovation, trade, and economic growth, they simultaneously challenge traditional notions of national sovereignty, privacy, and security. This research examines the legal, economic, and regulatory dimensions of cross-border data governance, highlighting the tensions between facilitating international data exchange and protecting national interests. By analysing existing international frameworks, domestic data localization laws, and emerging trade agreements, the study seeks to identify pathways for reconciling these competing imperatives.