Deal protects personal data exchanged between police and judicial authorities.
The EU and the US have reportedly signed on the dotted lines to protect personal data shared for law enforcement purposes, including terrorism investigations.
The ‘umbrella agreement’ between the two sides will ensure protection of personal data exchanged between police and judicial authorities, or between companies and law enforcement authorities, during the course of any investigation.
Negotiations have been going on for more than four years, but the talks have been hampered because EU citizens residing outside the US do not have the right to file a case in US court if they believe their data has been misused.
However, US citizens have the privilege of filing a case in EU courts, even from their own country.
The deal will allow citizens to access, rectify or delete personal data when it is processed with an objective to prevent, investigate, detect or prosecute criminal offences.
However, the European Commission has reportedly said that the agreement cannot be formally concluded until EU citizens get "right to judicial redress" in the US.
In March, US Congressman Jim Sensenbrenner introduced the Judicial Redress Act which gives citizens belonging to US allies the right to file lawsuit over data privacy in the US.