The agreement on cross-border data traffic between the EU and Japan came into force on July 1.
EU-Japan agreement to benefit companies
"It is a milestone in our joint efforts to drive forward the digitalization of European and Japanese society and the economy," says a statement from the EU Commission.
The entry into force of the agreement is intended to promote the concept of "free and trusted data flows". "A guiding principle for international cooperation in the area of data flows, based on our common values", according to the Commission.
As part of the Economic Partnership Agreement (EPA) between the EU and Japan, the agreement is intended to bring benefits for companies in most sectors, from financial services to transport, engineering and e-commerce. Above all, companies should be able to use data more efficiently in a predictable legal environment.
Reading tip: EU supply chain law - overview for companies
Data localization requirements are abolished
An important part of the agreement is the abolition of data localization requirements. Companies will no longer be obliged to physically store their data in the respective country.
"This would not only bring additional costs and complexity, as companies may have to set up and maintain data storage in multiple locations and duplicate the data they use, which would have a negative impact on their competitiveness, but could also undermine the security of this data," the Commission said.
At the same time, the protocol is intended to ensure that EU and Japanese regulations on the protection of personal data and privacy are fully complied with.
In addition, EU citizens are to be given the opportunity to complain to the Japanese data protection authority in future.
Link tip: EU-Japan Economic Partnership Agreement