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This article investigates the flow of communication policy principles across the supranational, international and national levels, through the lens of policy transfer. Policy transfer is a new concept for the field of media and communication studies. The article utilizes and expands on the concept to study the case of digital policy flows between leading regional powers, the EU and USA and MERCOSUR. The article argues that EU and US policy priorities are reflected in the Latin American policy framework, which shifts from a focus on audiovisual and culture-centred objectives to the digital economy paradigm. MERCOSUR then functions as a policy broker between ‘outside’ interests and those of its member states through the influence of international key players whose interests clash with those of regional goals. [ABSTRACT FROM PUBLISHER]