The intricate interplay between data sovereignty and free trade presents complex challenges for policymakers and international relations. Multilateral trade agreements, e.g., the CPTPP and the USMCA, incorporate explicit clauses on data flows and local storage requirements. Nevertheless, there is no consensus on whether/how measures related to data protection should fall within the purview of free trade agreements. The WTO Joint Statement Initiative on e-commerce highlights the increasing differences among participants regarding cross-border data flows and data localization matters. This panel will investigate the multifaceted dynamics surrounding the regulation of cross-border data flows, examining how the concept of data sovereignty interacts with the principles of free trade and how the protection of fundamental rights is best preserved. The panel will scrutinize recent developments while exploring whether/how varying approaches to data transfer restrictions can coexist with international free trade commitments.