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<p>We are currently undertaking analysis regarding the number of businesses this will
affect.</p><p> </p><p>The UK and the EU agree that the continued free flow of personal
data is an important underpinning feature of the future relationship for both economic
and security purposes. In 2017, around 40% of the EU’s service exports to the UK were
data-enabled worth approximately £30bn, and around 70% of the UK’s service exports
to the EU were data-enabled, worth approximately £80bn. This demonstrates that it
is in everyone’s interests that the exchange of personal data between EU Member States
and the UK continues in the event of a no deal scenario. The EU has an established
mechanism to allow the free flow of personal data to countries outside the EU, namely
adequacy decisions and the UK stands ready to begin the adequacy assessment process
right away.</p><p> </p><p>In the event of no deal, given the degree of alignment between
the UK and EU’s data protection regimes, the UK will transitionally recognise all
EEA states, EU adequate third countries, EU and EEA institutions, and Gibraltar, as
though they have been subject to an affirmative adequacy decision by the UK. This
will allow personal data to continue to flow freely from the UK to the EU. The UK
would keep all of these decisions under review.</p><p> </p><p>In a no deal scenario,
the UK does not expect the European Commission to have made adequacy decisions regarding
the UK at the point of exit. This means UK and EU organisations should take steps
to mitigate any impact in this scenario by implementing alternative transfer mechanisms
to send personal data from the EU to the UK. Details of what the alternative transfer
mechanisms available are and how to make use of them are set out in the ICO guidance
and gov.uk.</p><p> </p><p> </p>
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