On Friday, US President Joe Biden signed an executive order to implement a data transfer mechanism that was announced in March, which would strengthen Americans'' privacy privacy safeguards.
The deals seek to alleviate the difficulties that tens of thousands of businesses encountered following the release of two previous agreements due to concerns over US surveillance.
Gina Raimondo, a US Commerce Secretary, told reporters that the executive order "is the culmination of our efforts to restore trust and stability to transatlantic data flows" and "will protect the privacy of EU personal data."
The framework addresses the Court of Justice of the European Union''s concerns, which categorised the previous EU-US Privacy Shield framework as a valid datatransfer mechanism under EU legislation.
The White House said that "transatlantic data flows are critical for enabling the $7.1 trillion (nearly Rs. 5,86,18,300 crore) EU-US economic relationship" and the framework "will restore an important legal basis for transatlantic data flows."
Biden''s order bolstered current "privacy and civil liberties safeguards" for US intelligence collecting and created an independent, binding multi-layer redress mechanism for individuals who believe their personal information was illegally collected by US intelligence agencies.
EU officials said it would take six months for this to complete a complicated approval process, stating that the previous system only required immediate recourse to an ombudsperson inside the US administration, which the EU court rejected.
Biden''s order provides new safeguards on the US intelligence gathering, requiring that they do only what is necessary and proportionate, and creates a two-step process of recourse, first to an intelligence agency watchdog, then to a court with independent judges. These decisions would bind intelligence agencies.
In March, Biden and European Commission President Ursula von der Leyen said the profusional agreement provided stronger legal protections and addressed the EU court''s concerns.
Raimondo on Friday will send a series of letters to the EU from US agencies "evidencing the operation and enforcement of the EU data privacy framework," which "will form the basis for the European Commission''s assessment in a new adequacy decision," she said.
The Civil Liberties Protection Officer (CLPO) in the US Office of the Director of National Intelligence will investigate complaints and make decisions.
The US Justice Department is considering establishing a Data Protection Review Court to independently review CLPO''s decisions. Judges with experience in data privacy and national security will be appointed from outside the US government.
If European privacy advocates did not believe it would protect privacy, they have threatened to challenge the framework.