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As stated by the New York Times on 26 June 2008, the United States and the European Union are close to conclude an agreement allowing the exchange of personal data of their citizens, including credit card information, travel history and Internet browsing information in order to be shared with the law enforcement and security agencies.

According to an internal report revealed by the newspaper, the potential agreement that has been negotiated since February 2007 between the US Department of Homeland Security (DHS), the Justice and State departments and their European counterparts will make clear that it is lawful for European governments and companies to transfer personal information to the United States, and vice versa.

One of the issues still to be solved is that of whether European citizens should be able to sue the United States government in case it violates data privacy rules or, on the basis of incorrect personal information, it takes an adverse action against them such as denying them entry into the country or placing them on a no-fly list. The European law generally gives citizens the possibility to file a case and ask for damages from the governments and so does US Privacy Act of 1974 which however does not extend to foreigners.

The US officials are reluctant to accept it and try co convinces the EU that there are other possibilities to correct such cases like asking an agency to correct the misinformation through administrative procedures. The European Union still insists on its position that its citizens should have "the ability to bring suit in U.S. courts specifically under the Privacy Act for an agreement to be reached on redress". Such a concession would mean for the US administration to create new legislation which they are trying to avoid.

Some privacy rights advocates in Europe have warned on certain issues of concerns. The two negotiating parties have agreed that information related to race, religion, political opinion, health or "sexual life" may not be used by a government "unless domestic law provides appropriate safeguards." However, the agreement does not specify what an appropriate safeguard should be, leaving the decision to each government.

"I am very worried that once this will be adopted, it will serve as a pretext to freely share our personal data with anyone, so I want it to be very clear about exactly what it means and how it will work," said MEP Sophia in 't Veld.

The negotiators are trying to agree on minimum standards for privacy rights protection. The European law establishes independent government agencies to check whether personal data is being used lawfully and to assist citizens concerned about invasions of their privacy. As the United States has no such independent agency the Europeans have agreed, as a concession, that the American government's internal oversight system should be able to account for the use of Europeans' data.

US officials say they would like to resolve the problem before the end of Bush administration in January 2009. The European Parliament will have the power to ratify any agreements between US and Member States If the agreement does not require legislative action, Mr. Bush could complete it. It appears that the Europeans would like to wait until 2009 but the finalisation process might be delayed as Irish voters rejected it in a referendum this month.

In March, the United States and Germany concluded a bilateral deal facilitating the automatic exchange of data on suspected terrorists, that might be taken as a model for similar accords between the US and other European countries, applied to a wide-ranging exchange of information, including the fingerprints and DNA of suspects. A similar deal was made between Hungary and US in June 2008, and it was considered as a big step in the Memorandum between the two countries that strives for the Hungarian membership in the Visa Waiver Program. The Hungarian-US agreement was published in the Hungarian Official Gazette on 20 June.

U.S. and Europe Near Agreement on Private Data (28.06.2008)
http://www.nytimes.com/2008/06/28/washington/28privacy.html

US-EU private data sharing agreement at hand: report (29.06.2008)
http://www.physorg.com/news133928961.html

Report: US, EU Near Agreement on Personal Data Exchange (28.06.2008)
http://www.dw-world.de/dw/article/0,2144,3445491,00.html

FBI ready to demand detailed logs of Britons' internet and travel habits (29.06.2008)
http://www.guardian.co.uk/technology/2008/jun/29/privacy.internet