APEC Framework
The dichotomy between the U.S. and EU approaches to privacy heavily influenced U.S. involvement in the development of the APEC Privacy Framework. Although it is a voluntary framework that may be adopted by APEC member countries--with key areas of flexibility--it is significant because it establishes a global alternative to the DP Directive.

Contrary to the EU approach, the APEC framework anticipates commercial use of PII, cross-border data flows, and global operations that "follow the sun" in their operations and utilizes new computing concepts, such as grid computing, where data may be processed in multiple jurisdictions simultaneously.

Thus, the framework is a hybrid approach adapted from the U.S. and EU models. It enables multinational corporations to implement consistent approaches to the collection, processing and transfer of information in global operations. It adopts the OECD privacy guidelines and EU definition of PII, and endorses the EU principles regardin...

The framework leans toward the U.S. model, however, through its encouragement of legislative, administrative and self-regulatory approaches within each country and the avoidance of a strict "opt-in" requirement for data collection. It also eases cross-border complaint resolution by providing the option of handling these matters via a company process or through a cooperative process between the regulatory authorities in the sending and receiving countries.

The significance of the APEC framework cannot be overstated. First and foremost, the 21 APEC member countries include the U.S., Canada, Mexico, Peru, Chile, Russia, Australia and China. Consequently, the APEC economies span four continents, represent one-third of the world population, and half of the global gross domestic product (GDP). To be sure, any movement toward a harmonized global framework for privacy and security will be heavily influenced by the APEC framework.

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