EU-Japan deal on data flows enters into force

This deal is a milestone in our joint efforts to advance the digitalisation of European and Japanese societies and economies. Its provisions will facilitate business on both sides, sending a strong signal against digital protectionism. 

With its inclusion in the EU-Japan Economic Partnership Agreement (EPA), the agreement will deliver real benefits to companies active across most sectors, such as financial services, transport, machinery, and e-commerce. Businesses can now handle data more efficiently, without cumbersome administrative or storage requirements, in a predictable legal environment.  

This entry into force of this agreement also promotes the concept of ‘Data Free Flow with Trust’, a guiding principle for international cooperation on data flows, based on our shared values. It allows us to lay the foundation for a common approach on digital trade, acting against arbitrary unjustified restrictions to data flows, while promoting shared prosperity. 

Background 

In October 2022, the EU and Japan decided to start the negotiations to include rules on cross-border data flows in their EPA. 

The value of the fast-growing EU-27 data economy was estimated at €325 billion in 2019, representing 2.6% of gross domestic product (GDP). It is expected to almost triple by 2025, reaching about €830 billion (5.8% of the EU's overall GDP). For Japan, data economy was estimated to represent 1.2% of GDP in 2019. 

For more information 

EU-Japan Economic Partnership Agreement  

EU-Japan conclusion on cross-border data flows  

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