Japan: Implemented US-Japan digital trade agreement including cross-border data provisions

On 1 January 2020, the US-Japan digital trade agreement entered into force. Article 11 of the Agreement prohibits the two countries from restricting the cross-border transfer of information by electronic means if such activity is done for business purposes. However, a party is allowed to adopt restrictions necessary to achieve a "legitimate public policy objective", when that measure is proportionate to the objective and does not constitute an arbitrary or unjustifiable discrimination or restriction on trade.