Govt hails business potential of new global data deal

parliament_2The UK’s data protection reforms might be under fire from privacy groups but ministers are hailing a new deal on international data transfers, which it is claimed could be worth billions of pounds to the British economy.

The UK has become the first country in the world to be granted associate status in the Global Cross Border Privacy Rules (CBPR) Forum, which works to support international data transfers between member countries, safeguarding standards on data protection and privacy.

With 93% of the UK’s £400bn services exports being data-enabled, ministers argue that the trusted flow of data between countries is rapidly becoming an important contributor to economic growth.

Initially launched in the Asia-Pacific region, the CBPR Forum was expanded in April 2022 and the UK’s associate status empowers British businesses to transfer data with counterparts in countries including the US, Canada, Mexico, Japan, the Republic of Korea, the Philippines, Singapore, Chinese Taipei, and Australia.

The Global CBPR system is a government-backed data privacy certification programme that companies can join to demonstrate compliance with internationally recognised data privacy protections.

Many large multinational businesses have already been certified under the framework including Apple, IBM, and Mastercard, and it is one of the very few bodies which supports the secure flow of data across multiple countries, removing barriers and working towards a universal set of data transfer standards.

Minister for Data and Digital Infrastructure Sir John Whittingdale said: “The UK’s association with the Global CBPR Forum is an important step in building a practical and functional system for global data transfers.

“The safety and security of personal data as it moves between countries is paramount, so it’s vital that we work with our key international partners to design solutions that work for everyone.

“The UK already has high data protection standards in place when it comes to international transfers, and we look forward to sharing our approach on the global stage alongside the CBPR Forum.”

The move is part of the Government’s long-term strategy of striking international trade deals following Brexit, although one of the first agreements – with Japan – sparked a wave of criticism from British MPs.

And, arguably its biggest deal – the EU data adequacy agreement to continue the free flow of data to and from the bloc, worth £240bn to the UK economy – could also be on shaky ground, despite Whitehall assurances.

Late last week more than two dozen civil society groups and privacy experts called for the European Commission to rip up the UK’s agreement immediately, should the British Government’s data reforms be passed.

In an open letter to Brussels’ chiefs, the signatories claim that the UK’s Data Protection & Digital Information (No.2) Bill – which is designed to replace GDPR and could be passed by the autumn – will turn the UK into a “leaky valve” that undermines EU consumers’ data protection rights.

The letter stated: “The DPDI Bill flies in the face of the 2021 adequacy decision. If passed, the Bill would mean a wholesale deregulation of the UK data protection framework, allowing private companies to seek shelter in the UK to circumvent European data protection standards, and turning the UK into a ‘test lab’ for experimental and abusive uses of data.”

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