One of the lesser talked about aspects of trade in services in the UK-EU negotiations is the data adequacy decision.
The UK is a hub for global data flows: 11.5% of global cross-border data flows pass through the UK, 75% of this traffic is with the EU. The impact of the end of the transition period on data flows could be disruptive if the UK does not receive a data adequacy decision from the EU by 31 December.
Why is this important?
Trade is increasingly facilitated by cross border data flows, and businesses rely on this ability to transfer data for offering their goods and services. From services-based industries like financial services, to the logistics companies transporting goods around the world, data underpins trade, innovation, and ‘business as usual’ for many firms. Any restrictions on data flows will impact UK and EU business competitiveness and harm people on both sides of the channel.
Being deemed ‘adequate’ on data will mean that the EU considers the UK to provide a level of personal protec
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