Doubts remain over data privacy accord

Date: 25/05/2000

By Peter Chapman

THE European Commission's chances of parading a hard-won data protection deal at next week's EU-US summit hang in the balance as member state officials consider whether to endorse the accord.

They will decide whether the American industry-led 'safe harbour' system complies with the terms of the Union's 1998 data protection directive at a meeting on the eve of next Wednesday's (31 May) transatlantic summit.

Under the terms of the directive, EU member states can block exports of data to third countries which do not guarantee 'adequate' protection of European citizens' personal data. The new deal would allow exports to companies in the US which promise to abide by certain rules, but in the run-up to next week's vote, doubts remain over how effectively the scheme would be policed by American government agencies and the firms themselves.

Insiders expect Italy, Austria, and possibly Spain, to vote against the accord, struck after two years of negotiations between top Commission single market official John Mogg and former US Under-Secretary for Commerce David Aaron.

The three member states are sceptical of US industry's promises and fear that the deal falls far short of a cast-iron guarantee that companies will not misuse data - such as lists of consumers' names and addresses, and employee information - by, for example, selling them on to other firms.

But sources say the EU executive is confident of a positive result at next

week's meeting after shrugging off a possible challenge to the deal when it was discussed by member state's data protection watchdogs earlier this month. The 15 officials gave lukewarm approval to the accord, although they insisted that the Commission should not hesitate to step in if things went wrong.

If the agreement is approved next week, it will be trumpeted at the EU-US summit, boosting trade relations between the two blocs tarnished by Washington's retaliation over the Union's banana regime and ban on imports of hormone-treated beef.

But MEPs argue that they should be given a chance to express their views on the deal before it enters into force. Formally, the Parliament only has the right to ensure that the Commission does not go beyond is remit during the negotiations. However, German Socialist MEP Erika Mann, spokeswoman on trade with the US for the Parliament's industry committee, says Mogg has agreed to MEPs' demands for a debate on the details of the accord.

She added that while she supported the deal, she would seek reassurance that the Commission would carry out regular reviews of the safe-harbour scheme to ensure it was working properly. But others, including Italian Socialist Elena Paciotti, rapporteur on data protection for the Parliament's civil liberties committee, are set to attack the measure.

The European Commission's chances of parading a hard-won data protection deal at the forthcoming EU-US summit hang in the balance as Member State officials consider whether to endorse the accord.