It is a trade barrier... For services. And that's the ciritical bit of information.

Most international trade agreements don't cover services in in a comprehensive manner. Because they are so varied and difficult to regulate. E.g. banking, sales, advice, software.

For Cloudflare it's obviously of commerical interest to establish a world wide level playing field.

I don't see it happening. Certainly not because of US trade interests. Because there is a serious lack of good will towards the USA, basically anywhere in the (rest of the) world right now, and services are a much bigger part of the economy than manufacted produce.

The trend I see is to decouple from the US, and China.

I genuinely couldn't reccomend my own country to make a deal with the USA on services. Because we already have a serious issue with the dominance of US cloud tech.