BRUSSELS: On Saturday, the European Union and Japan reached a significant accord concerning the unrestricted transfer of data across borders, a development poised to boost business operations and potentially influence the global data regulatory landscape, as announced by the European Commission.
This agreement, as heralded by the European Commission, is poised to deliver a multitude of advantages to a diverse array of sectors, spanning financial services, transportation, machinery, and e-commerce. By streamlining data handling processes and eliminating the need for burdensome and costly administrative measures, companies across these industries stand to gain efficiency and cost-effectiveness. Simultaneously, the highest levels of data protection for citizens are assured, as underscored by EU trade chief Valdis Dombrovskis.
The primary objective of this agreement is to strike a harmonious balance between the more liberal approach adopted by Japan and the European Union’s pronounced emphasis on safeguarding personal data and privacy. Notably, it seeks to proscribe protectionist measures, including mandates for data localization, while preserving the authorities’ prerogative to intervene in cases of cyber-security, privacy, and personal data concerns.
The collaboration between these two partners, which had previously established a free trade agreement in 2015, had previously left unresolved the question of data flows. After a year of negotiations commencing in October 2022, this gap has now been filled.
Furthermore, the European Union has laid out plans to engage in similar data negotiations with its free trade partners, namely Singapore and South Korea. The EU also aims to incorporate regulations governing digital trade into forthcoming free trade agreements.
