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RECOMMENDATION (16005/2023 – C90018/2024 – 2023/0450(NLE))

On the draft Council decision on the conclusion, on behalf of the European Union, of the Protocol amending the Agreement between the European Union and Japan for an Economic Partnership

A-9-2024-0081

Committee on International Trade · Rapporteur: Danilo Oscar Lancini

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The Committee on International Trade recommends that Parliament give its consent to the conclusion of the Protocol amending the EU-Japan Economic Partnership Agreement. The Protocol adds rules on cross-border data flows. The negotiations were approved by the Council on 12 July 2022, launched on 24 October 2022 and concluded in principle on 28 October 2023. The agreement aims to give legal certainty that data flows between the EU and Japan are not hampered by unjustified data localisation measures, while respecting data protection rules. It complements the existing mutual adequacy arrangement for personal data and follows the Commission's Trade Policy Review, EU Data Strategy and Indo-Pacific strategy.

Committee position. The Rapporteur recommends that Parliament give its consent to the conclusion of the Protocol, without prejudice to its democratic right of continuous scrutiny.

Key points

  1. Parliament gives its consent to the conclusion of the Protocol amending the EU-Japan Economic Partnership Agreement.
  2. The Council approved negotiating directives on 12 July 2022 for the Commission to negotiate provisions on cross-border data flows in the agreement.
  3. The EU-Japan Economic Partnership Agreement entered into force on 1 February 2019 and foresaw an assessment of cross-border data flow provisions within 3 years.
  4. Negotiations on cross-border data flows were launched on 24 October 2022 and concluded in principle on 28 October 2023 at the EU-Japan High-Level Economic Dialogue.
  5. The agreement provides legal certainty that data flows between the EU and Japan will not be hampered by unjustified data localisation measures.
  6. It ensures the free flow of data with trust in full compliance with the EU's and Japan's rules on data protection and the digital economy.
  7. The outcome confirms the EU and Japan's commitment to the rules-based international trading system and to shaping global data flow rules.
  8. The agreement deepens the partnership with Japan, a crucial EU partner in the Indo-Pacific.
  9. The negotiated rules complement the existing mutual adequacy arrangement between the EU and Japan for personal data.
  10. They are in line with the consolidated proposal for provisions on cross-border data flows and protection of personal data and privacy in trade agreements.
  11. The proposal follows the Commission's Trade Policy Review, EU Data Strategy, Indo-Pacific strategy and the Joint Declaration on privacy and personal data protection.
  12. Parliament's consent is needed under Article 218(6) TFEU for the Council to adopt the decision and for the Protocol to come into force in due time.

Who is affected

  • EU and Japanese businesses and supply chains that rely on cross-border data flows, which gain legal certainty against unjustified data localisation.
  • The EU and Japan as digital economies, deepening their partnership and cooperation on global data flow rules.
  • Personal data protection regimes in the EU and Japan, which the agreement must fully comply with.

Figures and deadlines

  • 12 July 2022: date the Council approved negotiating directives for cross-border data flow provisions.
  • 1 February 2019: date the EU-Japan Economic Partnership Agreement entered into force.
  • 3 years: period after entry into force within which the EU and Japan were to assess the need for cross-border data flow provisions.
  • 24 October 2022: date negotiations on cross-border data flows were launched.
  • 28 October 2023: date negotiations were concluded in principle at the EU-Japan High-Level Economic Dialogue.

Legal basis: Article 207(4), first subparagraph and Article 218(6), second subparagraph, point (a)(v) of the Treaty on the Functioning of the European Union.