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The Telecommunications Industry Association (TIA), the leading association representing the manufacturers and suppliers of high-tech communications networks, today welcomed the announcement of a new agreement reached by the EU and U.S. that will govern the handling of European online data.

The framework, which would be put in place after consultation with European privacy regulators and representatives from member states, is called the “EU-U.S. Privacy Shield.” The prior set of privacy rules that allowed for cross-border data transfers by U.S. companies working in Europe, known as Safe Harbor, was invalidated by the European Court of Justice in October 2015.

“A new framework provides greater clarity for U.S. companies operating in Europe, while avoiding the international trade disruptions that would have accompanied a shut-down of trans-Atlantic data flows,” said TIA CEO Scott Belcher. “This will make it possible for American firms to engage in online communications that are essential to their everyday business, while at the same time providing sensible privacy protections for data.”

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