What is adequacy in relation to the GDPR?

Adequacy in relation to the GDPR is a system whereby the EU recognizes that the data protection safeguards in place in a third country, are adequate for the purposes of GDPR and provide the same levels of safeguards as apply in the EU for the protection of personal data here. Where a country is granted adequacy, transfers of data can take place between the third country and the EU as if the country were a member state of the EU effectively.