The EU has adopted the decision on the implementation of a protocol to include provisions on cross-border data flows in the EU-Japan Economic Partnership Agreement. The protocol will provide greater legal certainty, ensure that data flows between the EU and Japan will not be impeded by unjustified data localization measures, and also ensure the benefits of free data flow in accordance with EU and Japan's rules on data protection and the digital economy.
The protocol will enable companies to handle data efficiently without cumbersome administrative or storage requirements, and give them a predictable legal basis. Data localization requirements, such as the physical storage of data locally, will be removed. Companies will avoid additional costs and complexities because they do not need to build and maintain data storage facilities in multiple locations and duplicate the data they use, which would negatively impact their competitiveness and also undermine the security of such data.
At the same time, the protocol ensures that the rules on the protection of personal data and privacy in both the EU and Japan, which contribute to trust in the digital economy, will be fully respected.
Once the agreement has been ratified by Japan and both parties have notified each other of the completion of their internal procedures, it can enter into force.