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Very similar to trade barriers, data protection has been an obstacle to free global data flow. The European legal system on cross-border data flow set up by Directive 95/46/EC prohibits transfer of personal data to third countries which do not have an adequate data protection level. With enormous international implications, such a regionally oriented system is heavily dependent on effective monitoring of cross-border data transfer. Due to a lack of proper supervision on data transfer, it encounters many challenges, which forces the European Commission to adopt the contractual model and the corporate law model. Meanwhile, compared with issues like free trade and environmental protection, not much international consensus has been reached on cross-border data protection. As a result, bilateral, regional, and multilateral collaborations between national sovereignties are to be strengthened, to facilitate transborder data flow and to safeguard individuals� right to data protection.
