UK-New Zealand Free Trade Agreement: data explainer (web version)
Published 28 February 2022
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International data flows are essential for supporting the modern lives we lead. The UK-New Zealand Free Trade Agreement will ensure that trusted data can flow freely and securely between the 2 countries while guaranteeing the UK’s high standards of data protection.
The deal recognises the importance of digital trade to growth across all sectors of the economy, and contains provisions to stimulate a trading environment that businesses and consumers can have confidence in. The deal supports and protects online shoppers, and it will also help UK businesses to trade with New Zealand in modern services such as finance, creative industries, architecture, law, and other professional services. The digital sector adds £151 billion to the economy[footnote 1] and lifts wages, with workers in the digital economy earning around 50% more than the UK average.[footnote 2]
Supporting UK businesses and consumers
The deal enables the free flow of trusted data between the UK and New Zealand so that trade can flourish between our 2 countries. Data underpins everything from emails to electronic payments to shipments across borders. The deal will support UK businesses to provide modern services, ensuring that they can collect, process, and transfer data without facing unnecessary red tape.
The deal removes unjustified data localisation requirements. UK businesses will not incur unnecessary costs of storing their data in servers in New Zealand. Small and medium-sized enterprises (SMEs), start-ups and scale-ups will benefit as they are often most affected by complex and costly data requirements.
Protecting your personal data
The deal safeguards the UK’s high standards on personal data protection and locks in a requirement for personal data to be protected in both countries. It ensures that both the UK and New Zealand maintain their domestic data protection regimes and draw on world-leading international principles and guidelines in their design, such as accountability and openness.
Transfers of personal data to New Zealand must satisfy the UK’s data protection laws, which will provide confidence for consumers to shop online and benefit from international services. The deal also requires both the UK and New Zealand to publish information on the protections they provide and includes information on how citizens can take steps to enforce their personal data protection rights.
Supporting UK innovation
The free flow of trusted data underpinned by the deal can unlock new opportunities for UK businesses, enabling them to provide innovative services. In addition, the deal allows for public access to certain anonymised government datasets in machine-readable formats. This creates opportunities for UK businesses and researchers to build and offer innovative products such as real-time transport apps – helping citizens in towns and cities.