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Second International Data Governance Review Meeting

In order to support the implementation of the Institutional Arrangement for Partnership (IAP) launched under the OECD and other initiatives and proposals by the Government of Japan to realize DFFT in Institutional Arrangement for Partnership (IAP), while reflecting information and requests from stakeholders such as Japan and companies related to the cross-border transfer of data, we will hold a review meeting with the aim of conducting discussions, examinations, and recommendations by experts.

Overview

  • Date and Time: Friday, February 9, 2024, from 3:00 p.m. to 5:00 p.m.
  • Location: Digital Agency Government Office and Online Conference (Teams)
  • Agenda:
    1. Opening
    2. Proceedings
      1. Review of the First Review Meeting and Aims for the Current Fiscal Year
      2. Case studies from members
        • KAWAMURA Member ((Kokuken) National Agriculture and Food Research Organization)
      3. Free discussion
    3. Communication, etc.
    4. Adjournment

Materials

Related Information

Minutes

Date

Friday, February 9, 2024, from 3:00 p.m. to 5:00 p.m.

Location

Digital Agency Executive Office and Teams

Attendees

Members (Chairman and below, in alphabetical order)

Chairman Yamamoto, Member Atsumi, Member Inadani, Member Kawamura, Member Kitamura, Member Kito, Member Kurosaki, Member Sato, Member Sawada, Member Suzuki, Member Fujii, Member Miyamoto, Member Wakameda

Observer

  • Personal Information Protection Commission Secretariat
  • Ministry of Internal Affairs and Communications

Secretariat

  • International Strategy, For the public Group, Digital Agency
  • Ministry of Economy, Trade and Industry, International Affairs Office
  • Mizuho Research & Technologies Co., Ltd.

Discussion Summary

(1) Review of the First Review Meeting and Aims for the Current Fiscal Year

Secretariat Explanation
  • The establishment of the Institutional Arrangement for Partnership (IAP) under the OECD is being promoted in order to ensure international interoperability of regulation and related systems concerning cross-border transfer of data.
  • International data governance requires a combination of a "first layer" of multilateral development of basic mechanisms for reliable data flows and a "second layer" of bilateral and minority cooperation. The IAP is a multilateral layer that promotes specific bilateral and minority discussions and international data governance efforts.
  • In order to reflect the needs of Japanese industry in international governance, we aim to propose an initial project of the IAP from Japan and lead the discussion. In this review meeting, we would like to discuss specific proposals based on the needs of domestic stakeholders.
  • In promoting international data governance, it is important to form a domestic mechanism and ecosystem for the promotion of comprehensive international data governance, including personal and non-personal data, in Japan based on the data strategy. In this review meeting, we would like to summarize the recommendations for the strategic construction of such an ecosystem.
Status of efforts based on the DFFT Study Group last year
  • At the DFFT Study Group until last fiscal year, discussions were held on an international framework centered on the G7. How do you envision the position of China in the future development of the IAP with a secretariat in the OECD?
    • In the IAP, individual projects can be coordinated between the OECD and other area and international organizations, so that discussions can be conducted flexibly by changing participating countries and parties. (Secretariat)
  • Please tell us the current status of efforts regarding solutions such as "the establishment of a system for mapping organized information on national systems related to cross-border data transfer and the establishment of a mechanism for the function of the system" proposed in the past DFFT Study Group.
    • The content of the recommendations made by the DFFT Study Group is disseminated to international forums such as G7 as a matter that should be prioritized for discussion. (Secretariat)
    • Is there any domestic effort to map the legal systems of each country?
    • Although there are entities that are sorting out the legal systems of each country individually, there is a Issue where information becomes obsolete even if it is sorted out once, in addition to the lack of a unified sorting method. Therefore, the DFFT Study Group has proposed that a mapping mechanism equipped with a mechanism for updating information is necessary in cooperation with each country. (Secretariat)
Building a Domestic Mechanism and Ecosystem to Promote International Data Governance
  • In the process of building a domestic mechanism and ecosystem for the promotion of international data governance, merely picking up needs from within Japan may lead to a conflict between international and domestic discussions. Isn't it necessary to consciously share the global agenda with domestic actors?
    • While utilizing opportunities such as hearings to domestic companies in the form of study meetings, we will vigorously advance discussions and work to familiarize domestic companies with the Global Agenda. (Secretariat)
    • It is important to show a stance of collecting domestic needs in this Study Group. However, considering the resources of this Study Group, it may not be very efficient to collect and analyze individual needs and opinions from the bottom up in this Study Group. In addition, the Japanese market has become Galapagos in many fields, and there are many cases where there is a gap with global needs. Therefore, it is better to actively make efforts such as conveying the premise of discussions on DFFT and IAP and the recognition of Issue in the world to Japan.
  • Long-term investment is required for the formation of a domestic mechanism and ecosystem for the promotion of international data governance. It is necessary to consider how to secure resources other than public funds in anticipation of future expansion.
    • We would like to continuously discuss how to show the value created by data and how to monetize it in this Study Group, while borrowing the knowledge of members participating from industry. (Secretariat)
    • In the procurement of funds, leadership is essential, and leaders need to continue to communicate their vision and story to various stakeholders to invest risk money and management resources. In this regard, the holding of international events has achieved some results, but it is expected that other means will also be utilized.
On a point in international debate
  • It is important to further consider the system of cross-border transfer of non-personal data. In addition, it is assumed that it will be necessary to connect and jointly use the data held by the government and the private sector in order to form a domestic mechanism and ecosystem for the promotion of international data governance. Therefore, it may be better to consider data distribution by viewing data in two axes: "individuals and non-individuals" and "government and private sector".
    • As regulation and the like related to industrial data are being introduced in various countries, we recognize that the distribution of non-personal data is an important point in corporate practice. We would like to consider how data governance should be based on the differences in the classification and nature of the data you pointed out. (Secretariat)
    • Since the classification of data differs depending on the legal system of each country, it is important to increase the transparency of the legal system of each country first. In addition, given the difference in the definition of data in such systems, it may be easier to set the theme to be discussed in the IAP and other forums based on the purpose to be achieved rather than the data itself.
  • There is a concern that cross-border transfer of personal data will be restricted if individuals are reflected in photos taken in drones or satellite photos. It would be good if there were common international criteria for the circulation of such data.
  • It is conceivable that there will be a cross-border data space in the future, but in that case, cross-border transfer of data will become an even more important issue.
    • In the collaboration of dataspaces, discussions have begun from the policy side in the three layers of systems, technologies, and connectors. At present, particular emphasis is placed on the construction of domestic data connections mechanisms, but in the future, collaboration with overseas dataspaces is also expected. Therefore, we would like to organize the patterns in which data-crossing occurs and consider measures for each pattern. (Secretariat)
  • In order to ensure that regulation is transparent about the cross-border transfer of data, it is important to request that the original purpose and purpose of regulation be made clear, beyond the specific content and actual operation status. This will make it easier for a wide range of stakeholders to consider the appropriateness of regulation and the existence of alternative means.
    • As you pointed out, we believe that if irrational regulation is brought to light through transparency, it can exert a certain amount of pressure on the harmonization of regulation. From such a perspective, we would like to promote efforts to ensure transparency. (Secretariat)
  • Although efforts for sandboxes in regulation are being made domestically and internationally, it is difficult to say that international cooperation between sandboxes is being made effectively. In the future, it may be good to promote international discussions on data distribution while incorporating efforts for sandboxes. In addition, since there is a lot of Issue in sandboxes themselves, it may be good to involve sandbox-related initiatives in both aspects of resolving the Issue of sandboxes and improving the environment for the use of technology related to data distribution. Since the Japanese sandboxes have the advantage that they can be used outside financial sector, they can be strategically used to take the lead.

(2) Case studies from members Member KAWAMURA ((Kokuken) National Agriculture and Food Research Organization)

  • How many business opportunities do you expect to have in China as a destination for business development using WAGRi?
    • Although the need to enter China is not high, the need to export is large, so it is considered that there is a need to unify certification systems and ensure compatibility. In addition, it is difficult to share data on land, but there is a need to share data on weather and pest damage.
  • How is the intellectual property right of data and metadata in WAGRi handled?
    • For data, rules are developed based on the guidelines of the Ministry of Agriculture, Forestry and Fisheries, etc., and contracts are concluded.
  • What is Issue's view on promoting the use of WAGI?
    • One Issue is that it is difficult for farmers to imagine specific benefits such as increased profits because quantitative evidence on the benefits of data utilization is not sufficient. Since some organizations are increasing profits by utilizing data, we believe it is important to transmit such successful cases. In addition, there are many elderly farmers, and it is difficult to make large-scale investments. Therefore, we are also working to promote the utilization of data for students who will be engaged in farming in the future.

End