Brazil and the European Union (EU) have signed a mutual recognition agreement on standards for processing and protecting personal and corporate data between the two territories.

The ceremony formalizing the measure took place on Tuesday (Jan. 27) at the Planalto presidential palace and was attended by acting President Geraldo Alckmin and European Union (EU) Commissioner for Democracy, Justice, the Rule of Law, and Consumer Protection, Michael McGrath.

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“It will bring more legal certainty, make life easier for people and companies, reduce costs, improve competitiveness, and stimulate reciprocal investments. A study shows that digital commerce could grow from 7 percent to 9 percent and lead to even greater service complementarity, bringing the European Union and Brazil closer together,” Alckmin said during the event.

The vice president emphasized that the EU is Brazil’s second-largest trading partner, after China, and one of the country’s largest direct investors. Alckmin also noted that this is Brazil’s first bilateral agreement on data protection. At the ceremony, he represented President Luiz Inácio Lula da Silva, who is on an official trip to Panama.

The decision indicates that the European Commission recognizes that Brazil provides an adequate level of personal data protection. At the same time, through the National Data Protection Agency (ANPD), the Brazilian government certifies that the European Union maintains standards equivalent to those established in the General Personal Data Protection Law (LGPD).

For the European Commissioner, the mutual agreement recognizing equivalence in data protection creates a common area of trust for more than 670 million people, the combined population of both territories.

“This mutual adequacy decision is really very comprehensive, as it covers both the public and private sectors and will pave the way for the free flow of data, benefiting trade, citizens, and organizations everywhere. I am confident that your data, no matter where you are in Europe, will be protected,” said Michael McGrath.

Responsible for enforcing data protection legislation in Brazil, ANPD considers the measure a historic milestone for personal data protection, the digital economy, and the consolidation of fundamental rights in an increasingly data-driven world.

ANPD President Waldemar Gonçalves Ortunho Júnior explained that mutual recognition allows international transfers of personal data between Brazil and the European Union to occur directly, securely, and simply, without the need for additional data transfer mechanisms.

“The adequacy decision ensures that the personal data of Brazilians, when transferred to the European Union, are afforded protection equivalent to that guaranteed to European citizens,” he assured.

The adequacy decision is an instrument provided for in the LGPD that allows the international transfer of data when the destination country or international organization offers a level of protection deemed adequate.

According to ANPD, the measure does not apply to data transfers conducted solely for public security, national defense, state security, or criminal investigation purposes.