The question then is, what is the source of authority to deem one's earnings -- if one is one of the People without the District of Columbia -- as effectively connected to a “trade or business”? That authority can only come from one source: you. Via completing and signing a "W-9" or similar form, thereby certifying "U.S. person", "U.S. citizen", and "individual", it appears the "effectively connected to a 'trade or business'" nexus is formed.
But what happens if a payor deems one's payment "effectively connected to a 'trade or business'" without a W-9 or your consent? What if additionally you told the payor, "Do not send me '1099' Forms" and they ignore you and do it anyway? Would this not constitute fraud? Would you all agree that any and all liabilities created by the fraudulent issuance of 1099's would be 100% the payor's liability?