The United States-Mexico-Canada Agreement (USMCA) took full effect Wednesday (July 1).

The agreement includes digital trade provisions that tech companies say appropriately promote cross-border data flows and storage.

Social media platforms will continue to be held harmless for third-party content on their websites under the agreement, though according to the compromise, House Speaker Nancy Pelosi (D-Calif.), and other Dems, had wanted it scrubbed.

Language in the USMCA maintains that the civil liability carve-out "enhances the economic viability of these engines of growth that depend on user interaction and user content."

The Motion Picture Association (MPA) was applauding the milestone.

“The Motion Picture Association congratulates President Trump, Ambassador Lighthizer, and leaders from Mexico and Canada for entry into force of the USMCA," said MPA Chairman Charles Rivkin. "The film and television industry accounted for $16.3 billion in exports last year alone, and registers a positive trade balance in every major market in the world. As this agreement begins to take full force, we will have better tools to address the global threat of piracy while also facilitating the growth of the legal, digital market for creative content. We look forward to working with the governments to ensure the full and effective implementation of all intellectual property and market access commitments under the agreement, while continuing to further improve protections for creators in today’s constantly evolving digital landscape.”

"The agreement will drive job creation and includes the strongest, most advanced, and comprehensive set of labor provisions of any United States trade agreement," said White House Press Secretary Kayleigh McEnany.

The United States-Mexico-Canada Agreement (USMCA) took full effect Wednesday (July 1).

The agreement includes digital trade provisions that tech companies say appropriately promote cross-border data flows and storage.

Social media platforms will continue to be held harmless for third-party content on their websites under the agreement, though according to the compromise, House Speaker Nancy Pelosi (D-Calif.), and other Dems, had wanted it scrubbed.

Language in the USMCA maintains that the civil liability carve-out "enhances the economic viability of these engines of growth that depend on user interaction and user content."  

The Motion Picture Association (MPA) was applauding the milestone.

“The Motion Picture Association congratulates President Trump, Ambassador Lighthizer, and leaders from Mexico and Canada for entry into force of the USMCA," said MPA Chairman Charles Rivkin. "The film and television industry accounted for $16.3 billion in exports last year alone, and registers a positive trade balance in every major market in the world. As this agreement begins to take full force, we will have better tools to address the global threat of piracy while also facilitating the growth of the legal, digital market for creative content. We look forward to working with the governments to ensure the full and effective implementation of all intellectual property and market access commitments under the agreement, while continuing to further improve protections for creators in today’s constantly evolving digital landscape.”

The House has voted to approve the compromise USMCA trade bill.  

It now goes to the Senate for ratification.  

Related: ITI Tells Hill That USMCA Is Key Vote 

The bill includes first-of-its-kind, cutting-edge digital trade provisions," according to tech group ITI. Those include promoting cross-border data flows, allowing data storage "where it makes most sense," preventing tariffs and tech taxes, protecting source code and algorithms by disallowing divulging those as a condition of doing business, and creating consistent testing and certification of tech goods.  

Related: Sec. 230 Language Remains in USMCA 

“The North American Free Trade Agreement received a welcomed update in the form of USMCA, bringing the agreement into the digital age with strong rules that are critical to the continued growth of the Internet economy," said CCIA president Ed Black. "We applaud House Leadership for working with the Administration to get a deal, and the House of Representatives for their votes today. We encourage the Senate to move quickly in the new year on USMCA.” 

"We applaud the House’s swift vote today on USMCA—the new NAFTA," said Consumer Technology Association president Gary Shapiro. "The Senate now needs to do its part—carry this critical free trade agreement across the finish line and vote on final passage. 

"In addition to facilitating trade with our neighboring countries, the new NAFTA’s digital trade provisions – importantly intermediary liability protections, forced data localization prohibitions and balanced copyright provisions – are especially critical for small businesses. They will provide a solid platform for expanding trade and investment around the innovative technology products America is known for." 

"The USMCA reflects the importance of data, technology, and innovation to the North American economy,” said ITI president Jason Oxman.

Tech companies are telling their representatives that voting for the compromise U.S.-Mexico-Canada [trade] Agreement (USMCA) is a "key vote."  

That came in a letter from the Information Technology Industry Council (ITI) to House Speaker Nancy Pelosi (D-Calif.) and Republican Leader Kevin McCarthy (R-Calif.), with copies to all House members. 

Related: Sec. 230 Language Remains in USMCA 

The association scores items that are must yes votes in terms of the interests of its tech constituency. 

ITI cites "first-of-its-kind, cutting-edge digital trade provisions." Those include promoting cross-border data flows, allowing data storage "where it makes most sense," preventing tariffs and tech taxes, protecting source code and algorithms by disallowing divulging those as a condition of doing business, and creating consistent testing and certification of tech goods. 

"[W]e urge you and your colleagues to support the implementing legislation for the agreement when it comes to the House floor," wrote ITT President Jason Oxman. "American companies of all sizes and across all industries leverage technology, and can expect to benefit from the USMCA’s digital trade and other tech-focused provisions." 

ITI members include Amazon, Apple, eBay, Google, Twitter and Microsoft. 

Computer and other consumer tech companies are concerned about proposed new changes to Mexican tax law that they say discriminate against foreign tech firms and is in conflict with "longstanding global principles." 

They expressed those concerns in a letter to U.S. Trade Representaative Robert Lighthizer, Secretary of State Mike Pompeo, Treasury Secretary Steve Mnuchin and U.S. National Economic Council director Larry Kudlow. 

The groups, which include the Consumer Technology Association and Computer & Communications Industry Association (CCIA), said the officials "should discourage Mexico from pursuing these legislative changes, and work to join ongoing multilateral discussions regarding necessary changes to global tax rules in light of digitization."  

“Mexico remains a critical trading partner of the United States, and the landmark digital trade chapter in the U.S.-Mexico-Canada Agreement will open up opportunities for digital exporters of both markets," said president and CEO Ed Black. "Legislation such as these new tax rules in Mexico will undermine this potential.” 

Tech and computer groups are praising what the White House was billing as progress on digital trade issues in U.S./Japan trade talks. 

The White House announced Wednesday (Sept. 25) that the President and Japanese Prime Minister Shinzo Abe had reached agreements to "rebalance" their trade relationship, including "robust commitments on digital trade, which will greatly expand commerce across our modern industries."  

The agreed-upon provisions include: 

1. "Prohibitions on imposing customs duties on digital products transmitted electronically such as videos, music, e-books, software, and games. 

2. "Ensuring non-discriminatory treatment of digital products, including coverage of tax measures. 

3. "Ensuring barrier-free cross-border data transfers in all sectors.

4. "Prohibiting data localization requirements, including for financial service suppliers. 

5. "Prohibiting arbitrary access to computer source code and algorithms. 

6. "Ensuring firms’ flexibility to use innovative encryption technology in their products." 

That was enough to draw hopeful comments from tech groups looking for good news out of an otherwise tariff-focused Administration. 

“This is a good first step," said CCIA president/CEO Ed Black. "In the future, a comprehensive U.S.-Japan trade agreement would help to partially fill the void left by the U.S. withdrawal from the Trans-Pacific Partnership. We would encourage countries to continue dialogue as the two parties work towards a comprehensive trade agreement with strongly enforceable digital protections.” 

“Japan and the United States are strong allies and recognized leaders in digital technology and innovation. We applaud both governments for reaching preliminary agreement on provisions that reflect state-of-the-art rules for facilitating digital trade in the 21st century,” said Sam Rizzo, director of policy for global tech group ITI. “In addition to the benefits it provides for businesses and consumers in both markets, this first-stage agreement represents a positive step toward solidifying international norms that ensure that global markets remain fair, open, and competitive in the modern economy. We appreciate the work undertaken by the United States and Japan to this point and encourage both sides to continue progress toward an agreement that is comprehensive, subject to dispute settlement, and representative of the deep economic ties between both countries.”