THE PROSPECT of a damaging trade war between the EU and USA over the issue of data protection has receded following intensive talks between EC director-general for internal markets John Mogg and David Aaron, US special ambassador for trade and e-commerce. The dispute was triggered by the EC’s new Data Protection Directive, clauses 7.2, 7.3 and 7.4 of which forbid companies in member states to transfer data such as credit card information and mailing lists to non-EU states where there are no adequate data protection laws. The US is one such country; and talk of data protection in the land of the free-for-all is tantamount to burning Old Glory. [Although details of the compromise have yet to be published, it looks as if the EC has backed down in the face of American threats and bullyboy tactics. Sad!]