- New agreement will remove barriers
to digital trade, providing much needed support for Ukrainian
jobs and livelihoods following Russia’s invasion
- Announcement follows a direct
request from Ukraine’s government and comes on Ukrainian
Independence Day [Wednesday 24 August]
- Move follows UK’s decision to cut
tariffs on all goods from Ukraine to zero under existing
UK-Ukraine free trade agreement
The UK and Ukraine have announced their intention to pursue a new
digital trade agreement to help Ukraine rebuild its economy and
protect livelihoods following Russia’s invasion.
International Trade Secretary met with First Deputy
Prime Minister and Minister of Economy of Ukraine Yuliia
Svyrydenko and Vice Prime Minister and Minister of Digital
Transformation of Ukraine Mykhailo Fedorov virtually and
Ukrainian Ambassador to the UK Vadym Prystaiko in person in
London [on Tuesday 23 August] to reiterate the UK’s unwavering
support for Ukraine and begin talks.
The digital trade agreement will aim to support Ukrainian
businesses by cutting red tape and helping them to trade with the
UK more efficiently through technology such as electronic
transactions, e-signatures, and e-contracts.
It will also make it easier for UK companies to work with
Ukrainian businesses and support with their economic recovery.
Total trade between the UK and Ukraine was worth £1.9 billion in
2021 and UK exports of digitally delivered services accounted for
73% of all UK services exports to Ukraine in 2020.
International Trade Secretary said:
“Putin’s brutal and unprovoked invasion of Ukraine has had
devastating human consequences. The UK stands shoulder to
shoulder with Ukraine and will use trade as a force for good to
help the country rebuild its modern economy after this barbaric
war.
“Our partnership with Ukraine will help them seize the brighter
days ahead, and we will continue to do everything in our power to
protect Ukrainian jobs, livelihoods and families.”
Vadym Prystaiko, Ambassador of Ukraine to the United
Kingdom said:
“The United Kingdom has shown unwavering support throughout this
illegal invasion and the ties between our governments have never
been closer.
“While we fight fearlessly for the freedom of our nation, many
Ukrainians also look ahead to how we will rebuild our country.
Strengthening our economic ties through this landmark digital
trade agreement will support our IT industry, which is set to
become a major driver of economic growth for our businesses and
cities.”
Today’s announcement comes following a direct request from
President Zelenskyy’s government. The Ukrainian government has
identified supporting the digital economy as one of its areas of
focus for the recovery and reconstruction of the country. The UK,
as a global leader in digital trade, is well placed to help with
that.
It follows the UK’s removal of all tariffs under the existing
UK-Ukraine free trade agreement in May, supporting Ukrainian
businesses and producers to export goods and rebuild their
economy. A new digital trade agreement would further strengthen
our trading relationship, providing additional and much-needed
economic support for businesses in Ukraine.
In July the Trade Secretary also launched a new UK-Ukraine
Infrastructure Taskforce, which is building partnerships between
UK and Ukrainian businesses to help repair damaged and destroyed
infrastructure including bridges and homes in and around
Kyiv.
The UK has also introduced one of the largest and most severe
packages of economic sanctions against Russia. Measures cover
over £18 billion worth of products that were traded with Russia
in 2021, as well as over 1,000 individuals and over 100 entities
in key sectors such as defence.
