EU and Japan reach accord on data flow agreement

In Osaka, at the G7 Trade Ministerial, the EU and Japan have concluded an accord aiming to facilitate online business operations, reduce expenses, and amplify efficiency. The agreement focuses on the unrestricted flow of data across borders, which, once ratified, will become an integral part of the EU-Japan Economic Partnership Agreement (EPA).

European Commission (EC) claims that these provisions would serve as the foundation for a unified approach to digital trade, rejecting ‘digital protectionism’ and arbitrary limitations. EC also stated that the agreement eliminates costly data localization requirements for European and Japanese companies. This means that this would prevent the mandatory local storage of data, avoiding added costs, complexities, and potential security risks associated with businesses having to duplicate data in various locations.

This deal materialized during the EU-Japan High-Level Economic Dialogue, in which Valdis Dombrovskis, the Executive Vice-President of the European Commission, Nishimura Yasutoshi, the Japanese Minister of Economy, Trade, and Industry, and Yōko Kamikawa, the Japanese Minister of Foreign Affairs jointly led.

This marks a rather landmark step for the two parties regarding data flows, as the two parties began the data flow negotiation in October 2022. According to The Japan Times, the EU plans a similar agreement with Singapore and South Korea.