Digital trade and data sovereignty: Comparative legal frameworks in the EU, US, Africa and China

The internationalisation of business transactions has made transactional data a high-value asset, which has resulted in controversies over data sovereignty. Within the international economy, driven by AI, Cloud Computing, and Mega-Data-Centres, countries often find themselves caught between competing demands to facilitate international data flows and protect sovereignty. This research explores the impact of various approaches to digital governance. Through a comparative methodology, the study combines qualitative analysis of laws and policies under international economic law regimes and theories of digital governance to assess approaches in the larger trading frameworks comparatively. Herein, the four paradigms established include that of the EU, which protects rights at its forefront and has strengthened its laws under GDPR and prospective AI law and schemes such as EuroStack to decrease overdependence on alien “hyperscale clouds,” while those of the US are market-driven and open, but threatened by AI security laws and enhanced surveillance powers under FISA/CLOUD Act, the AfCFTA Digital Trade Protocol with its eight Annexes in 2025, signals a historic shift toward harmonised rules for cross-border payments, data flows, and digital identity, although capacity gaps persist within the region. Findings indicate an asymmetry of sovereignty and openness, with sovereignty strategically promoted by all countries, including the EU, China, and other states, with openness advocated by the US, and the hybrid integration approach in Africa. Emerging trends include AI geopolitics, Blockchain ID, and Privacy-Enhancing Technologies, widening sovereignty and governance gaps, and creating “digital silos.” In all, this research proposes sovereignty pluralism in the digital era, with ICC and UN/CEFACT’s multi-lateral approaches towards interoperable standards under WTO frameworks.