EU-Japan: the Council approves a protocol to facilitate free flow of data

The Council adopted the decision on the conclusion of a protocol to include provisions on cross-border data flows in the agreement between the EU and Japan for an Economic Partnership.

The protocol will provide greater legal certainty, ensuring that data flows between the EU and Japan will not be hampered by unjustified data localisation measures, and also ensuring the benefit from the free flow of data according to the 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 provide them with a predictable legal framework.

Data localisation requirements, such as the physical storage of their data locally, will be removed. Business will avoid additional costs and complexities because they will not need to build and maintain data storage facilities in multiple places and duplicate the data they use, which would have a negative impact on their competitiveness and would 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 of both the EU and Japan, which contribute to trust in the digital economy, will be fully respected.

Next steps

Once the agreement has been ratified by Japan, and the two sides have notified each other about the completion of their internal procedures, it can enter into force.

Background

On 26 September 2022, the Council approved negotiating directives for the Commission to negotiate the inclusion of provisions on cross-border data flows in the agreement between the EU and Japan for an Economic Partnership. The negotiations were concluded in principle on 28 October 2023.

On 29 January 2024, the Council adopted the decision on the signing of the protocol and on 31 January the signature took place.

On 14 March 2024, the European Parliament gave its consent to the protocol.