Out-Law News 1 min. read

Passenger data deal signed by EU and US


The European Commission and the US Department of Homeland Security on Friday signed a controversial agreement permitting the transfer of air passenger data to the US, despite the disapproval of the European Parliament.

The agreement gives a legal basis to a practice that has been carried out informally for over a year.

Airlines operating passenger flights to, from or through the US have been transferring passenger data contained in their reservation and departure control systems to US Customs since March last year, in order to comply with US anti-terror requirements.

The transfer has been controversial, not only because the US does not meet general EU data protection requirements, but because a proposed agreement setting out the terms of the transfer has also been found wanting.

Despite concerns, which have led the European Parliament to vote against various aspects of the transfer and seek a judicial ruling on the proposed agreement, the deal was signed on Friday by US Secretary of Homeland Security Tom Ridge, Irish Ambassador Noel Fahey (representing the Presidency of the European Union), and EU Ambassador Günter Burghardt, (representing the European Commission).

The agreement will be in effect for three-and-a-half years once implemented, with renegotiations to start within one year of the agreement's expiration date. It will, says the Department of Homeland Security, strike a balance between facilitating legitimate travel while contributing to the security of the US and EU member states.

"The US and the EU are equally committed to not only improving the safety of air passengers and the security of our borders, but also to protecting the privacy of air passengers consistent with both US and European laws," said Secretary Ridge on Friday.

"Today's signing is the result of more than a year of negotiations between the United States and the European Commission, and is a sign of our united commitment to combat terrorism," he added.

But the conclusion of the agreement brings the spectre of a legal challenge from the European Parliament, which is now entitled to seek the annulment of the international agreement and the adequacy finding that preceded it – approved by the European Commission and the Council earlier this month.

The Assistant Homeland Security Secretary for Policy, C Stewart Verdery Jr, acknowledged as much to the Washington Post, commenting, "We believe the agreement would withstand a legal challenge".

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