EU and US agree draft package for data protection
European Commission and United States officials have announced that they have reached a provisional agreement on a package of proposals known as the 'safe harbour', designed to ensure adequate protection of data transferred between the two sides. The agreement follows two years of intensive dialogue, and it is hoped that arrangements can be formalised by July, following approval procedures in the EU and US. Internal Market Commissioner Frits Bolkestein said: 'Once definitively agreed by all the parties concerned, this package will facilitate transatlantic information flows by providing legal certainty for operators and the safeguards consumers demand to protect their privacy.' The agreement is based on the so-called 'safe harbour' principles, a compromise between the EU's law based regime and the self-regulatory approach of the US. It requires that US companies voluntarily sign up to 'safe harbour' principles which satisfy the EU's Data Protection Directive, to which they would then be bound. The system would be overseen by US public bodies. Once in place, the arrangements will provide legal certainty for data controllers in the EU that they are complying with the Directive when exporting data to US companies complying with the 'safe harbour' principles. The agreement will also cut down on administrative burdens and provide guidance to US organisations who want to meet EU standards. Clarification has been reached between officials over the way in which data protection principles will be enforced in the US, including the accuracy and reliability of companies signing up to the 'safe harbour' and the possible sanctions for non-compliance. Adherence will be reviewed in the middle of 2001. On the EU side, the 'safe harbour' principles will be met by a formal decision recognising the principles as an 'adequate protection' standard for transfers of personal data to third countries, as required by the Data Protection Directive. The decision will require the support of a qualified majority among Member States, and the European Parliament will be consulted, beginning in March. Formal approval procedures will be launched in May.