The Big Story: U.S.-China trade deal touches tech. Officials from the United States and China announced last week that the two nations reached a phase-one trade compromise that will reportedly reduce a 15 percent tariff on roughly $120 billion in certain Chinese goods to 7 ½ percent. The deal would further halt additional tariffs that were slated to go into effect this month on other popular electronic goods.
The deal also requires China to end the practice of forced technology transfers and make certain IP commitments. Future talks will also reportedly address other tech sector concerns, such as data localization and digital trade.
As we noted in a blog post, the imposition of tariffs is incredibly harmful to startups and entrepreneurs. The phase-one deal makes encouraging steps toward eliminating tariffs, but more progress needs to be made moving forward. While larger companies with stable revenue are often more equipped to handle the added costs resulting from tariffs, startups generally lack the resources to do so, or the ability to obtain a tariff exemption. Startups are the driving force behind innovation in the U.S. economy, and leaving tariffs in place threatens growth and investment in the startup ecosystem.
Policy Roundup:
Step towards bipartisan privacy bill. Democratic and Republican staff on the House Energy and Commerce committee released the first draft of bipartisan data privacy legislation that offers progress in the push for a comprehensive federal privacy framework.
House approves USMCA. The House passed the U.S.-Mexico-Canada Agreement (USMCA) yesterday with a bipartisan majority. USMCA contains a new, robust digital trade chapter that will advance the interests of startups and hopefully serve as a model for future trade agreements to which the United States is a partner.
Lawmakers revisiting SESTA-FOSTA. A group of House and Senate Democrats, including Rep. Ro Khanna (Calif.) and Sen. Elizabeth Warren (Mass.), introduced legislation to examine the impact SESTA-FOSTA—which removed liability protections for platforms "knowingly" hosting sex trafficking-related content shared by users—may have had on sex workers and their ability to protect themselves from physical and financial abuse.
Cuomo promises net neutrality bill in 2020. New York Governor Andrew Cuomo (D) announced in a press release that he will propose strong net neutrality protections for New York state as part of his 2020 legislative agenda.
EU legal advisor says data transfers “valid.” The advocate general for the European Union’s top court, Henrik Saugmandsgaard Øe, said that Facebook’s transfer of EU user data to the U.S. is “valid.” Øe cautioned, however, that some companies should be blocked from transferring European users’ data if they can’t guarantee compliance with EU privacy laws.
Acting NTIA administrator departing. Diane Rinaldo, the acting administrator of the National Telecommunications and Information Administration—the agency that advises the White House on technology and telecom issues—announced that she is stepping down from helming the agency.
Engine comments on Copyright Office modernization. Engine submitted comments this week to the Senate Judiciary Subcommittee on Intellectual Property in support of U.S. Copyright Office modernization efforts. As we noted in our comments, greater digital access would allow entrepreneurs to better identify any relevant copyrighted works, owners, or license holders.
House advances telecoms bills. The House passed bipartisan legislation this week that would ban the U.S. government from purchasing telecommunications equipment from "any company that poses a national security risk,” such as Chinese telecoms firm Huawei, and would provide funding for networks to remove and replace any suspicious equipment. House lawmakers also passed two other bipartisan bills to help the FCC improve its mapping of broadband Internet access across the country.
Startup Roundup:
#StartupsEverywhere: Tucson, Ariz. The team at Startup Tucson is arming business owners and aspiring startup founders with the tools, knowledge, and support systems they need to help their ideas thrive. We recently spoke with Liz Pocock, Startup Tucson’s CEO, about the work they do and how they’re harnessing the resources and expertise of their community.
