Why the Trump Administration Should Protect the EU-U.S. Data Privacy Framework

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The EU-U.S. Data Privacy Framework is a vital mechanism ensuring the continued flow of transatlantic data critical to one of the world’s most significant trading relationships. As the incoming Trump administration prepares its agenda, it should prioritize preserving this framework rather than dismantling it, as doing so could jeopardize U.S. economic interests and global data partnerships.

A Brief History of the Data Privacy Framework

In 2017, the first Trump administration retained the Privacy Shield framework, which allowed for seamless data transfers between the EU and U.S. without violating the EU’s stringent data protection laws. This decision maintained critical trade relationships and prevented the EU from imposing barriers against U.S. businesses. The Privacy Shield was eventually invalidated by the Court of Justice of the European Union (CJEU) in 2020, prompting the negotiation of a new arrangement, finalized as the EU-U.S. Data Privacy Framework in 2023 under the Biden administration.

Like its predecessor, the new framework relies on a carefully calibrated executive order—Executive Order (EO) 14086—which establishes guidelines for intelligence activities and data protection, providing assurances required under EU law. These include detailed limitations on surveillance activities and a mechanism for EU citizens to seek redress regarding data handling practices. Over 2,800 companies, spanning industries from tech to financial services, have already certified compliance under the new framework.

The Stakes for Businesses and Trade

Data flows between the EU and U.S. are the backbone of a multi-trillion-dollar economic partnership. Disrupting the framework risks substantial fallout:

  • Economic Losses: Interruptions to data transfers could lead to significant trade barriers, reducing U.S. exports and impeding businesses reliant on transatlantic commerce.
  • Legal Uncertainty: Without the framework, companies could face a patchwork of compliance requirements, lawsuits, and operational risks from data protection regulators in Europe.
  • Global Competitiveness: Failure to uphold data protection standards could weaken U.S. leadership in the global digital economy.

Preserving EO 14086’s Safeguards

EO 14086 provides the foundational structure necessary to meet EU data protection standards. It codifies practices already entrenched in U.S. intelligence operations and establishes clear boundaries for surveillance. Importantly, the order introduces a data protection review court to address EU citizens’ concerns, a critical feature demanded by the CJEU in prior rulings. These measures align with long-standing U.S. practices while addressing European concerns about transparency and oversight.

The Risks of Disruption

Project 2025, a policy blueprint developed by Heritage Foundation and Trump administration veterans, has called for reviewing Biden-era executive orders, but it has wisely avoided recommending a repeal of EO 14086. Eliminating or altering this order would destabilize the framework, likely leading to its invalidation by the CJEU and creating chaos for businesses. Additionally, undermining the review mechanisms, such as the quasi-judicial review court, would dismantle a key element that resolved previous EU objections.

A Strategic Opportunity

Rather than dismantle EO 14086, the Trump administration can use its review process to strengthen reciprocal safeguards and address EU concerns about intelligence collection. For example, it could:

  1. Evaluate the effectiveness of reciprocal protections offered by EU member states.
  2. Ensure that the review court operates efficiently and transparently, maintaining trust without compromising national security interests.
  3. Promote the framework as a model for balancing data protection with economic imperatives, showcasing U.S. leadership.

Why We Need to Maintain the EU-US DPF

Maintaining the EU-U.S. Data Privacy Framework is a strategic imperative for the Trump administration. It preserves vital trade relationships, supports U.S. businesses, and reinforces global data leadership. Disrupting the framework would lead to economic harm, legal uncertainty, and strained transatlantic relations. By protecting EO 14086 and the framework it supports, the administration can secure a legacy of safeguarding both economic and privacy interests.

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