EU and US are one step closer to introducing a new framework for free transatlantic data flows, which is a welcome development for transatlantic trade.
During President Biden’s visit to Brussels last Friday, the EU and the US announced that an agreement had been reached in principle on a new data transfer framework to replace the Privacy Shield, which was invalidated by the European Court of Justice in 2020. This means that the EU and the US are one step closer to introducing a new framework for free transatlantic data flows, which is a welcome development for transatlantic trade.
Important details remain to be hammered out by the EU and the US, but the agreement in principle sends an important political signal at a time when it is vital for the EU to forge closer ties with like-minded partners.
Data flows are essential in today’s increasingly digital and “serviceified” trading reality. Payment information, customer data and trade in goods and services made possible by digital solutions are all examples of when data may need to move across borders. Finding a new framework for secure and safe data transfers with the EU’s largest trading partner is therefore positive and creates predictability for trading companies.