Title: Digital Trade Agreements: Implications of Cross-Border Data Regulations for Services Trade Competitiveness (Literature Review)
Authors: Oyelowo Alhassan Oluwafemi, Sanusi Babajide AbdulRasheed, Adeyemo Richard Olaitan, Araokanmi Kehinde Olawale
Volume: 10
Issue: 2
Pages: 25-33
Publication Date: 2026/02/28
Abstract:
In the current digital age, digital service trade has presented numerous benefits to the global economy. However, digital trade also presents several challenges to the regulations of international trade. The study explains how and why openness or restrictiveness on cross-border data flows affects the ability of firms to export services, scale digitally enabled business models and compete in international markets. The study used a qualitative literature review to investigate how cross-border data regulations in digital trade agreements affect the competitiveness of services trade in different countries. Based on the regulatory frameworks, institutional settings and trade outcomes, the analysis synthesizes theoretical, empirical and policy-focused literature to evaluate the effects of data governance provisions on market access, cost structures and the competitive positioning of digitally delivered services. The results showed that cross-border data regulations have a significant influence on services trade competitiveness by affecting firms' ability to scale digitally, increasing transaction costs, and influencing regulatory certainty. While moderate data regulation may support trust and institutional stability, overly restrictive or fragmented regimes consistently reduce digital services trade and international competitiveness.