EU lawmakers are pushing for additional negotiations to strengthen a proposed data transfer agreement between the European Union (EU) and the United States. They argue that the current agreement still has shortcomings that must be addressed. The potential delay in reaching an accord is concerning for the thousands of companies that rely on the agreement.

In December, the EU executive presented a draft decision stating that the safeguards implemented by the United States to mitigate intelligence activities were sufficient to address privacy concerns regarding EU data. Previous data transfer pacts had been invalidated by the European Court of Justice due to similar concerns, impacting numerous companies involved in the transatlantic transfer of personal data for commercial purposes, including financial services, human resources, and e-commerce.

Falling short: Lawmaker Juan Fernando Lopez Aguilar expressed his disappointment with the proposed pact, stating that although it contained some improvements, it still fell short of expectations. Key areas of concern highlighted by lawmakers include judicial independence, transparency, access to justice, and remedies. Aguilar called on the European Commission to continue negotiations and address these concerns to ensure genuine data protection for EU citizens and businesses.

What’s next: The decision on the proposed pact ultimately rests with EU member states, who have yet to provide a non-binding opinion. Following this, the European Commission will make its final decision regarding the agreement.