EU and Japan agree to create the world's largest area of safe data flows

The EU and Japan concluded yesterday their talks on reciprocal adequacy. They agreed to recognise each other’s data protection systems as ‘equivalent’, «which will allow data to flow safely between the EU and Japan», according to the European Commission. «Each side will now launch its relevant internal procedures for the adoption of its adequacy finding, the Berlaymont added. For the EU, this involves obtaining an opinion from the European Data Protection Board (EDPB) and the green light from a committee composed of representatives of the EU Member States. Once this procedure will have been completed, the Commission will adopt the adequacy decision on Japan».

This mutual adequacy arrangement should create the world’s largest area of safe transfers of data based on a high level of protection for personal data. Europeans should benefit from strong protection of their personal data in line with EU privacy standards when their data is transferred to Japan. This arrangement that will also complement the EU-Japan Economic Partnership Agreement, should at last allow European companies to benefit from uninhibited flow of data with this key commercial partner, as well as from privileged access to the 127 million Japanese consumers.

To live up to European standards, Japan has committed to implementing the following additional safeguards to protect EU citizens’ personal data, before the Commission formally adopts its adequacy decision: A set of rules (binding on Japanese companies importing data from the EU and enforceable by the Japanese independent data protection authority (PPC) and courts) providing individuals in the EU whose personal data are transferred to Japan, with additional safeguards that will bridge several differences between the two data protection systems ; a complaint-handling mechanism to investigate and resolve complaints from Europeans regarding access to their data by Japanese public authorities. This new mechanism will be administered and supervised by the Japanese independent data protection authority.

Commenting the issue of these talks, Věra Jourová, Commissioner for Justice, Consumers and Gender Equality concluded: «Japan and EU are already strategic partners. Data is the fuel of global economy and this agreement will allow for data to travel safely between us to the benefit of both our citizens and our economies. At the same time we reaffirm our commitment to shared values concerning the protection of personal data. This is why I am fully confident that by working together, we can shape the global standards for data protection and show common leadership in this important area».

On EU side, the Commission is now planning on adopting the adequacy decision in autumn this year, following the usual procedure : approval of the draft adequacy decision by the College ; opinion from the European Data Protection Board (EDPB), followed by a comitology procedure ; update of the European Parliament Committee on Civil Liberties, Justice and Home Affairs ; adoption of the adequacy decision by the College. In parallel, Japan will finalise the adequacy finding on their side.

 

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