European Commission officials have struck a deal that could put a clause guaranteeing international data flows into a trade agreement with 22 countries outside the bloc, including the United States and Australia. But the Commission is in deadlock over whether to cave to pressure from the US despite criticism that salvaging the pact on services could undermine EU privacy law.
Several countries involved in TiSA, including the United States, have insisted the agreement will be canceled if there’s no guarantee that data can flow between trade partners. On top of that, critics and companies in favour of TiSA argue the Commission’s move on data flows could have a domino effect and be copied in other trade agreements.
One official said the compromise includes a formulation that makes sure the EU’s tough data protection laws can’t be toppled by the trade agreement. EU data protection rules prevent personal data from being transferred to countries outside of Europe if they don’t guarantee equal privacy protection.
Negotiations for a Trade in Services Agreement, under way since April 2013, aim to establish global minimum requirements for trade in sectors such as financial, digital and transport services. Participants now include 23 WTO members, who together account for 70% of global trade in services.
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