The agreement will benefit companies active across most sectors, from financial services, transport, machinery to e-commerce. It will enable them to handle data efficiently without cumbersome administrative or storage requirements, and offer a predictable legal environment in which to prosper.

The agreement was concluded at the EU-Japan High-Level Economic Dialogue (HLED), co-chaired by European Commission executive vice president Valdis Dombrovskis, Japanese minister of economy, trade and industry Nishimura Yasutoshi, and Japanese foreign minister Yoko Kamikawa on the margins of the G7 Trade Ministerial.

“This deal is a milestone in our joint efforts to advance the digitalisation of our societies and economies. Cross-border data flows are a crucial enabler to this development. Once ratified, the agreed provisions will be included in the EU-Japan Economic Partnership Agreement (EPA),” an EU release said.

The provisions lay the foundation for a common approach on digital trade, sending a strong message against digital protectionism and arbitrary restrictions.

They are also consistent with the EU digital agenda and EU privacy rules, and deliver on the digital trade agenda of the EU's Indo-Pacific Strategy.

Similar negotiations with Korea and Singapore are due to follow, the release said.

A key element of the deal is the removal of costly data localisation requirements, an unnecessary burden for European and Japanese businesses.

Negotiations for the deal began in October last year.

Fibre2Fashion News Desk (DS)