Fresh talks planned in bid to settle data protection dispute

Date: 07/01/1999

By Peter Chapman

TOP US and European Commission officials will meet again later this month to try to thrash out agreement on the EU's new data protection regime.

The two sides will make a fresh attempt to settle their differences following their failure to do so at a series of top-level meetings last year between senior internal market official John Mogg and US Commerce Under-Secretary David Aaron.

The talks are aimed at averting the risk that data destined for the US might be blocked by EU member states as they implement the new Union laws on information protection which entered into force in October.

Officials are now expressing cautious optimism that there could be a breakthrough by next month.

“My guess is that there could be a deal by February, although I would not like to be held to that,” said one senior Commission data protection expert.

The Commission and the US authorities are still divided over the substance of recent American proposals based on a voluntary approach to data protection among industry groups. The US proposals outlined a set of 'safe harbour principles' which American firms could abide by to demonstrate compliance with the EU's new rules.

But Mogg recently told Aaron that he was not convinced this scheme would match the 'adequate' levels of protection required by the EU directive if bans on data transfers are to be avoided.

However, the Commission insists there is little danger of a trade war erupting over the issue if a solution is not found quickly. “Data flows are taking place. There is no reason to say they won't continue,” said one Commission source.

He added that even if EU member states were not satisfied with the general laws or approved industry schemes in place in a country such as the US, private contracts between companies sending and receiving data could still be used to guarantee high levels of protection in line with the directive.

“Spain has had the US on its list of countries that do not meet the requirements of the data legislation for quite some time. However, in practice there have not been problems,” he said.

Single market officials say talks between the US and Commission data protection specialists will continue ahead of the next meeting between Mogg and Aaron.