The EU has concluded a deal allowing businesses to seamlessly transfer personal data between the bloc and Japan, deepening economic links as the two sides also agree a free-trade pact.

It comes after several years of data talks. The deal should come into effect towards the end of the year.

"Data is the fuel of global economy and this agreement will allow for data to travel safely between us to the benefit of both our citizens and our economies," EU Justice Commissioner Vera Jourova said in a statement.

"By working together, we can shape the global standards for data protection and show common leadership in this important area," she said.

The Commission said the decision would mean that personal data could flow from the European Economic Area to Japan, without needing any further safeguards or authorisations.

A similar data transfer pact with the United States which underpinned billions of dollars of transatlantic trade was struck down in 2015 by the EU's top court on the grounds it did not sufficiently protect Europeans' data from U.S. snooping, throwing the business world into legal limbo.

A new one has since been negotiated and has been in place for over a year.

The EU and Japan last year concluded the world's largest free-trade agreement, which will make up about 30 percent of global output, and are due to sign it in a ceremony later on Tuesday in Tokyo.

(With Reuters)