A recent VoxEU article from the Centre for Economic Policy Research (CEPR) discusses the trade impact of EU adequacy decisions. The decisions determine whether a country's data protection regulations are equivalent to those of the EU, allowing personal data to flow freely to and from the EU. The article finds that such decisions increase digital trade by 6% to 14%, with the most significant impact coming from the two adequacy decisions granted to the US. The results highlight the importance of transatlantic mutual recognition for digital trade. Policymakers must balance the need to protect data privacy with potential adverse effects on productivity, innovation, and trade.
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