How do adequacy decisions on data flows affect trade?

In this article, published on 6 July by the Centre for Economic Policy Research, members of the Global Governance Programme team study how strong rights for data subjects affect digital trade outcomes. Authors find that the EU adequacy decisions positively affect digital trade between the EU and third countries, and that this positive trade effect is bounded by the US.

"If EU member countries fail to approve a transatlantic adequacy agreement later this year it is likely to come at a significant cost (...) Yet another rejection of transatlantic data adequacy in conjunction with uncertainty regarding whether standard contractual clauses can be used by individual companies as a substitute may induce either an exit from the EU market or a switch to facilities that process personal data within the EU."

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