How can we secure data flows between Sweden and the UK after Brexit?

Just a few years ago, neither digital nor data-related issues were on the EU's trade agenda. The importance of data as an economic and trade issue has been highlighted only in the last year. It is clear that it is no longer a sectoral issue, it is an issue that affects the entire business community at large, and thus the entire global economy.

Last week techUK, the British equivalent of IT&Telecom companies, visited Stockholm(read more about their visit here). For their visit, we organized a seminar at the British ambassador on the theme of data flows and its consequences of the British exit. The speakers were Oscar Wåglund Söderström, Head of Unit at the National Board of Trade and Julian David, CEO of techUK. The conversation was moderated by Sophia Bengtsson from the Confederation of Swedish Enterprise's Brussels office.

The consensus at the seminar was striking. The importance of maintaining as frictionless flows as possible between Sweden (as well as across the EU) and the UK is crucial. The UK's compliance with both existing and future data legislation is a prerequisite for this.

Good conditions for the free flow of data are crucial for Sweden's economy and innovation capacity. Being a leader in digitalization requires optimal conditions with our neighboring markets, especially important markets like the UK. After all, the UK is the third largest export market for Swedish services. In its report, the National Board of Trade mentions that data services are by far one of the most important sectors to consider in Swedish-British trade in services.

The UK has announced that it will apply existing data legislation, which is a welcome announcement, but - although it sounds obvious - at the end of the day, you can't just copy all the legislation and everything goes on as usual. Even if the UK chooses to apply the same laws that exist in the EU today, it risks not having the same effect. The effect will be different because EU law is based on a larger context, its own principles, other regulations, courts, etc.

Sweden must now make its voice heard in the negotiations. We need to pursue a policy that takes advantage of the opportunities of digitalization and globalization. Sweden must take the digital lead to ensure frictionless data flows between the EU and the UK after the withdrawal. Otherwise, Swedish companies risk losing an important market for digital services and innovation.