The EU and Japan reached a landmark agreement in late October on cross-border data flow that aims to make doing business easier, less costly, and more efficient. 

According to the European Commission, the agreement provides a legal framework for cross-border data flows, removes costly data localization requirements, and enables companies to handle cross-border data efficiently without unnecessary administrative and storage requirements. The removal of data localization requirements means that businesses will no longer have to store data locally, eliminating the need to build and maintain multiple data storage facilities – which will likely result in significant savings in terms of time, money, and resources. 

Valdis Dombrovskis, European Commission executive vice-president, said in a press release, "This deal marks a major step forward in terms of boosting the growth of the digital economy.” He highlighted that the deal “is essential to ensure the free flow of data with trust and to help us [in] shaping global rules on data flows.” Once ratified, the agreed provisions will be included in the EU-Japan Economic Partnership Agreement.