FY2023 SSU-Working Paper “EU’s AI Regulation and International Economic Law: The Complex Impact of the EU AI Act on Global Economic Governance”
SSU published working paper as the outcome of MOFA Grant Research Project “Trends of major countries (U.S., China, and Europe) in the field of economic security and policies that Japan should adopt”, titled “EU’s AI Regulation and International Economic Law: The Complex Impact of
the EU AI Act on Global Economic Governance” by Takemasa Sekine (Yokohama National University).
(Overview)
This paper analyses how the EU’s new Artificial Intelligence (AI) Act impacts global economic governance. A prominent feature of the Act is that it is grounded in hard law-style regulation, with an emphasis on a risk-based approach. However, this unilateral measure is difficult to evaluate in the context of current World Trade Organization (WTO) agreements, as the WTO rules are not suited to governing this new emerging technology. In addition, the EU does not promote AI governance in its free trade agreements (FTAs) or its digital economy agreements (DEAs), although other countries are starting to expand the rules related to AI. Despite its reluctance to incorporate AI issues in its FTAs/DEAs, facets of the EU AI Regulation may permeate other countries via the so-called ‘Brussels Effect’. It remains to be seen whether this phenomenon happens; if not, global AI governance will continue to be fragmented. Existing AI governance frameworks seem to be too large to come to a consensus on detailed rules regarding AI regulation. Moreover, a coordination mechanism across frameworks is lacking. In this situation, bilateral or plurilateral frameworks, such as FTAs and DEAs, have advantages in that they can encompass detailed discussions and mutual understanding among the participating countries, hopefully with the realisation of sufficiently flexible rules and mechanisms to address rapidly developing technologies. Countries, including those in the EU, are encouraged to promote the incorporation of AI regulation and cooperation within the scope of FTAs/DEAs.
Read the full text.
EU’s AI Regulation and International Economic Law: The Complex Impact of the EU AI Act on Global Economic Governance