A revised GDPR can boost EU’s digital trade and competitiveness

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The GDPR has set a global benchmark for data privacy, strengthening trust and influencing international regulations. However, it has also introduced regulatory uncertainty, high compliance costs, and barriers to cross-border data flows, which have reduced EU trade and productivity.

A revised GDPR could help address these trade barriers while maintaining strong data protection in an evolving digital economy.

"The GDPR has reinforced the EU’s regulatory influence, but at the expense of trade growth and productivity. High compliance costs and restrictions on data processing have for example impacted digital and high-tech industries, raising concerns about the EU’s competitiveness in the age of AI," says Hannes Berggren in a new analysis.

In order to strike a balance between privacy protection and economic growth, the analysis recommends streamlining enforcement, improving data transfer mechanisms, and aligning regulations with global standards. A more collaborative approach to data privacy regulation could enhance Europe’s digital trade potential while safeguarding privacy in a rapidly changing world.

Read the full analysis

Analysis: The GDPR and international trade: evidence and implications for EU policy