On Saturday, the European Union and Japan reached an agreement about how data can be shared between them. This is a big deal because it will make business easier and could even influence global rules for data. The European Commission, which is like the EU’s government, announced this.
The European Commission explained that this agreement will be good for companies in various industries, like finance, transportation, machinery, and online shopping. It means these companies can use data without dealing with a lot of complex and expensive paperwork.
Valdis Dombrovskis, the EU’s trade leader, said, “This will eliminate the need to store data locally, making business more efficient, all while keeping our citizens’ data safe.”
This deal tries to find a balance between the more relaxed approach in Japan and the EU’s strong focus on protecting people’s personal information and privacy.
This agreement will also stop countries from imposing protectionist rules that force data to stay within their borders. However, it will still allow governments to step in when it comes to things like cybersecurity and protecting people’s privacy and personal information.
Back in 2015, the European Union and Japan made a deal to trade goods freely, but they didn’t figure out how to handle the flow of data. After a year of discussions starting in October 2022, they’ve now sorted that out.
The EU is planning to have similar talks about data with its trade partners, Singapore and South Korea. They’re also looking to include rules about digital trade in their future free trade agreements.
