The European Commission's announcement last week that it had adopted the European Union-United States Data Privacy Framework (DPF) is welcome news, U.S. Commerce Secretary Gina Raimondo said in a statement.

The European Commission announced on Monday, July 10, the adoption of its "adequacy decision" to ensure data flows between Europe and the United States.

“The United States welcomes the European Union’s adoption of an adequacy decision for the DPF," Raimondo said in her statement the same day. "This framework, announced by President Joe Biden and European Commission President Ursula von der Leyen in March 2022, represents the culmination of years of significant collaboration between the United States and the EU and reflects our shared commitment to facilitating data flows between our respective jurisdictions in a manner that protects individual rights and personal data."

The adequacy decision follows Biden's Executive Order in October Implementing the DPF.

U.S. Commerce Deputy Secretary Don Graves met with European Commission President Ursula von der Leyen in Brussels, Belgium, in February.

"Now that the EU has adopted its adequacy decision for the DPF, personal data can be transferred from EU countries and from Iceland, Liechtenstein and Norway to U.S. organizations participating in the EU-U.S. DPF consistent with EU law," Raimondo said in her statement. "We expect this determination will also facilitate transfers through other EU legal mechanisms, including Standard Contractual Clauses and Binding Corporate Rules."

The European Commission's adoption of the adequacy decision will have an important impact on cross-border trade and other economic engines, Raimondo said.

"Trans-Atlantic data flows underpin more than $1 trillion in cross-border trade and investment per year and create greater economic opportunities for companies and citizens on both sides of the Atlantic," she said. "The DPF will be a particularly valuable tool for small and medium size businesses that wish to participate in the transatlantic economy, providing an affordable and straightforward means of transferring personal data consistent with EU law."

Now that the United States and Europe are on the same DPF page, the Commerce Department will provide information going forward.

"In the coming days, the U.S. Department of Commerce will launch a new website for the Data Privacy Framework Program," Raimondo said "Ahead of this launch, the U.S. Department of Commerce will provide guidance to participants in the EU-U.S. Privacy Shield Framework, 70% of which are small and medium enterprises, to facilitate their transition to the DPF."