C.2. Impact on trade patterns from changes in data flow regulation

The projected change in exports between regions with different data flow regimes are shown in the upper panel of Figure A C.2. Under the first no regulation scenario the projected increase in trade is very modest for regions with ad hoc authorisation policies, because most of these regions cannot reduce trade costs, because of prohibitive data localisation policies which prevent such regions from transferring data even if data flow policies were abolished.