Digital trade has become a key element in the EU's trade policy. The EU is the world's largest exporter and importer of digitally deliverable services and has a strong market position. Therefore, the development towards more digital trade provides opportunities for European consumers, for the economy and for the EU’s green and digital transition. The key difference between digital trade and traditional trade is the prominence of cross-border data flows. However, certain data are considered 'sensitive' and require protection and/or specific processing conditions.