Getty Images / Chip Somodevilla

A new executive order issued by president Donald Trump could have significant implications for the data sharing agreement between the European Union and the United States.

At present, the EU-US Privacy Shield sets out what data can be shared between businesses on both sides of the Atlantic ocean and how that data can be used. It is designed so data protection laws can be upheld between EU's the member states and the US.


However, one of Trump's latest executive orders (Enhancing Public Safety in the Interior of the United States) has implications for the Privacy Shield.

"Privacy Act," the order reads. "Agencies shall, to the extent consistent with applicable law, ensure that their privacy policies exclude persons who are not United States citizens or lawful permanent residents from the protections of the Privacy Act regarding personally identifiable information."

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The agencies Trump refers to are law enforcement bodies and the FBI and NSA, although more than 1,500 companies have signed-up to the agreement. The Privacy Shield, combined with the EU-US Umbrella Agreement, extend the benefits of the US Privacy Act to those in the EU and allows access to US courts for data protection issues. The language of Trump's executive order, critics say, could mean these provisions are removed.

Privacy experts said the impact of the executive order could have an impact on the Privacy Shield. Green MEP Jan Philipp Albrecht, who is also the European Parliament's rapporteur on data protection regulation tweeted to say the plans from Trump may break agreements between the EU and US.


In order to see this embed, you must give consent to Social Media cookies. Open my cookie preferences. If this is true @EU_Commission has to immediately suspend #PrivacyShield & sanction the US for breaking EU-US umbrella agreement. #CPDP2017 https://t.co/0TBAnIWydq — Jan Philipp Albrecht (@JanAlbrecht) January 26, 2017

The statement from Trump was enough to force the European Commission (EC) to issue an official statement in response. The EC said it was "aware" of Trump's order and the US Privacy Act has "never offered data protection rights to Europeans".

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The EC goes on to say the EU-US Privacy shield and the EU-US Umbrella Agreement, which comes into force on February 1, were set-up to protect the privacy of European citizens.

"We will continue to monitor the implementation of both instruments and are following closely any changes in the US that might have an effect on European's data protection rights," the EC's statement concluded.

The Privacy Shield was developed by EU and US negotiators in 2015 after the previous data sharing agreement between the two groups was struck down by Europe's highest court. In October 2015, the European Court of Justice ruled the Safe Harbour framework was invalid as data being sent out of the EU was not being properly protected.