Alckmin celebrates mutual recognition for data transfer between Brazil and the European Union: “Reciprocal investments”

Brazil’s Acting President of the Republic and Minister of Development, Industry, Trade, and Services, Geraldo Alckmin, celebrated the mutual recognition between the European Union and the South American country for international data transfer during a ceremony held at the Planalto Palace on Tuesday, January 27. The decision will bring Brazil and the European Union even closer together, Alckmin stated.

“This agreement will bring greater legal certainty, make life easier for individuals and businesses, reduce costs, improve competitiveness, and encourage reciprocal investments. A study indicates that digital trade could grow by 7 percent to 9 percent while also pointing to an even greater complementarity of services, bringing the European Union and Brazil closer together,” he said.

Alckmin underscored the importance of the agreement with the European Union. “This is the first data protection agreement that we have signed, and I am confident that we will soon conclude other agreements with the same goal. We are pleased that the first agreement is with the European Union, Brazil’s second-largest trading partner and one of the largest investors in our country.”

European Commissioner for Democracy, Justice, Rule of Law, and Consumer Protection Michael McGrath stated that the recognition is a political achievement that strengthens trust and shared partnership between Brazil and the European Union. “Today, as this mutual adequacy decision comes into effect, we are creating a common area of trust for more than 670 million people. This is the culmination of years of dialogue and technical exchanges, but above all, it is the result of a shared conviction that, in the 21st century, the protection of our citizens’ personal data is not a barrier to trade but rather the foundation of a sustainable digital economy.”

LEGAL CERTAINTY — The decision, which takes immediate effect, establishes a legal framework of trust for the international transfer of personal data between Brazil and the European Union, ensuring the protection of rights and legal certainty whenever the circulation of data is required for economic activities, service provision, scientific research, institutional cooperation, and the use of digital platforms with international operations.

Brazil’s Minister of Justice and Public Security, Wellington César Lima e Silva, emphasized that this recognition reflects the South American country’s institutional maturity and alignment with international standards for safeguarding fundamental rights in the digital environment. “Even more significant is that all these advances have, at their core, the protection of Brazilian workers, consumers, investors, and entrepreneurs.”

“This is an unequivocal demonstration of the government’s commitment, under President Lula, to what is most needed, particularly the protection of children and adolescents in the digital environment and the fight against crimes, fraud, and online scams. It is an affirmation that the Brazilian government always places its citizens first.”

INDEPENDENT — The so-called adequacy decisions on personal data protection are unilateral acts, adopted independently by each party through processes conducted in a coordinated manner. They do not depend on a treaty or international agreement, nor do they involve a formal signature.

On one side, the European Commission recognizes that Brazil provides an adequate level of personal data protection. On the other, through a Resolution of the National Data Protection Authority [Autoridade Nacional de Proteção de Dados /ANPD], Brazil acknowledges that the European Union offers a level of protection consistent with the provisions of Brazilian General Personal Data Protection Law [Lei Geral de Proteção de Dados Pessoais /LGPD].

ANPD Director-General, Waldemar Gonçalves, noted that the reciprocal recognition allows international transfers of personal data between Brazil and the European Union to take place directly, securely, and in a simplified manner, without the need for additional mechanisms for international data transfer. “This is a concrete step forward, with real impacts for citizens, businesses, and the economy as a whole,” he said during the ceremony.

“Today, we celebrate more than a regulatory act: we celebrate a mutual recognition of trust, built on shared values such as the centrality of the individual, the protection of privacy, respect for the rule of law, and the promotion of innovative, safe, and sustainable economic development. The decision announced today is the result of unilateral, independent, and legally autonomous acts, adopted in a coordinated manner between Brazil and the European Union,” stated Gonçalves.

BENEFIT FOR CITIZENS AND BUSINESSES — The recognition ensures that Brazilian citizens’ personal data, when legitimately transferred to the European Union, receive protection equivalent to that guaranteed to European citizens, with effective oversight and accountability mechanisms. In practice, this applies to the use of banking and telecommunications services, as well as digital platforms, apps, and streaming services operated by companies based in the EU, safeguarding rights such as access, correction, and deletion of personal data, where applicable.

From an economic standpoint, the adequacy decision significantly reduces bureaucracy and regulatory costs for companies operating between Brazil and the European Union. The recognition serves as a “regulatory green light,” streamlining operations, cutting costs, and accelerating business, innovation projects, and international cooperation initiatives, with a particular impact on data-intensive sectors such as technology, digital services, fintechs, healthtechs, online platforms, and the data economy.

Also at the ceremony, Brazil’s Minister of Science, Technology, and Innovation, Luciana Santos, pointed out how the decision creates an environment of predictability and trust, boosting investment, innovation, academic exchange, and productive integration. “From the perspective of our Ministry, this is a strategic measure that streamlines processes. The contemporary economy is increasingly based on data, knowledge, and connectivity. There is no cutting-edge science, disruptive innovation, or digital transformation without the international flow of reliable and protected data.”

Esther Dweck, Brazil’s Minister of Management and Innovation in Public Services, reiterated that the recognition between Brazil and the European Union promotes “greater economic integration with less bureaucracy.”

“By simplifying international data transfers, the decision reduces compliance costs and operational complexity for European and Brazilian companies. This will strengthen digital trade between the partners, who already maintain a deep and strategic economic relationship. In addition, the adequacy has the potential to facilitate market access for companies on both sides,” Dweck stated.

INTERNATIONAL COOPERATION —The mutual recognition takes place 10 days after the signing of the Mercosur–European Union Partnership Agreement, as recalled by the Acting President. “This recognition comes right after the signing of an agreement between Mercosur and the European Union. This was the world’s  largest agreement between blocs, showing that advancing in multilateralism, trade liberalization, and economic complementarity is possible.”

“At this moment, this is a very important outcome for our two regions, which have truly sought to strengthen cooperation and trade with one another. In fact, it represents a first step toward strengthening trade between the European Union and Brazil, and trade in general,” also reiterated European Commissioner Michael McGrath.

The adequacy decision further strengthens digital trade by facilitating access by Brazilian companies to a market of around 450 million consumers. In South America, only Argentina and Uruguay currently enjoy this recognition. With the decision, Brazil now joins this select group, enhancing its attractiveness for investment, innovation, and global partnerships grounded in legal certainty and clear rules.