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DRAFT RECOMMENDATION (COM(2023)0774 – C90000/2023 – 2023/0450(NLE))

On the proposal for a 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 regarding free flow of data

INTA-PR-757871

Committee on International Trade · Rapporteur: Danilo Oscar Lancini

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This is the rapporteur's draft report on the proposed Council decision to conclude a Protocol amending the EU-Japan Economic Partnership Agreement on the free flow of data. The rapporteur recommends that Parliament give its consent to the conclusion of the Protocol, which requires Parliament's consent under Article 218(6) TFEU for the Council to adopt the decision. The Protocol adds rules on cross-border data flows, providing legal certainty that data flows between the EU and Japan will not be hampered by unjustified data localisation measures, while respecting data protection rules. The negotiations were launched on 24 October 2022 and concluded in principle on 28 October 2023, following the Council's approval of negotiating directives on 12 July 2022.

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. The draft report gives Parliament's consent to the conclusion of the Protocol amending the EU-Japan Economic Partnership Agreement regarding free flow of data.
  2. The rapporteur recommends that Parliament give its consent, without prejudice to its democratic right of continuous scrutiny.
  3. Parliament's consent is needed under Article 218(6) TFEU for the Council to adopt the decision on conclusion and for the Protocol to come into force in due time.
  4. The Council approved negotiating directives on 12 July 2022 for the Commission to negotiate cross-border data flow provisions in the EU-Japan Economic Partnership Agreement.
  5. The EU-Japan Economic Partnership Agreement entered into force on 1 February 2019 and foresaw assessing the need for cross-border data flow provisions within 3 years.
  6. The EU and Japan launched negotiations on cross-border data flows on 24 October 2022 and concluded them in principle on 28 October 2023 at the EU-Japan High-Level Economic Dialogue.
  7. The agreement provides legal certainty that data flows between the EU and Japan will not be hampered by unjustified data localisation measures.
  8. It ensures the benefit of free flow of data with trust in full compliance with the EU's and Japan's respective rules on data protection and the digital economy.
  9. The negotiated rules complement the existing mutual adequacy arrangement between the EU and Japan for personal data and align with the consolidated proposal for cross-border data flow provisions in trade agreements.
  10. The outcome confirms EU and Japan commitment to the rules-based international trading system and to shaping global data flow rules that respect shared values and respective regulatory approaches.
  11. The agreement contributes to deepening the partnership with Japan, a crucial EU partner in the Indo-Pacific.
  12. The proposal pursues the Commission's strategy in the Trade Policy Review, the EU Data Strategy, the Joint Communication on the EU Strategy for Cooperation in the Indo-Pacific and the Joint Declaration on privacy and the protection of personal data.

Who is affected

  • Businesses in many economic sectors that rely on data flows and supply chains between the EU and Japan.
  • The EU and Japan, as among the largest digital economies in the world.
  • The Council, which needs Parliament's consent to adopt the decision on conclusion.

Figures and deadlines

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

Legal basis: Article 207(4), first subparagraph, Article 218(6), second subparagraph, point (a)(v), and Article 218(7) of the Treaty on the Functioning of the European Union.