European Commission and Japan reach agreement to facilitate international data flow

On October 28, 2023, the European Commission announced the conclusion of an agreement with Japan focusing on cross-border data flows, on the occasion of the G7 trade ministers meeting in Osaka.

According to the authorities, the purpose of the agreement is to make digital commerce between the two economic powers easier, less expensive and more efficient. “The data economy, which accounted for 2.6 percent of EU economic output in 2019, is expected to almost triple by 2025,” the Commission said.

The EU's head of trade, Valdis Dombrovskis, explains that the agreement is “essential to ensure the free flow of data with confidence and to help us [in] shaping global rules on data flows”.

According to the note released by the Commission, “The EU and Japan are among the largest digital economies in the world. This agreement is a milestone in our joint efforts to advance the digitalization of our societies and economies. Cross-border data flows are a crucial factor for this development.”

From the perspective of data protection and international transfers, the agreement will allow for the reduction of difficult administrative requirements, with an impact on the elimination of costly data location requirements.