The agreement is designed to replace the Safe Harbour pact, which the EU Court of Justice ruled invalid in 2015.
One key change is a commitment from the White House regarding bulk collection of data sent from the EU to the US.
The UK's Information Commissioner said a post-Brexit UK may have to adopt EU data protection rules to trade with it.
If approved by the EU member states, the pact could take effect in July.
The EU-US Privacy shield is designed to make it easy for organisations to transfer data across the Atlantic.
