Today, the Secretary of State for Business and Trade, Kemi Badenoch and the Ukrainian First Minister will sign the UK-Ukraine Digital Trade Agreement (DTA). This pivotal digital trade deal with Ukraine will support the country’s economy and greatly enhance the UK-Ukraine trade and investment relationship.

The Department for Business and Trade will host several Ukrainian ministers, along with 200 UK and international businesses and officials at Mansion House, to lay the foundation for closer future cooperation.

This new Digital Trade agreement will ensure Ukraine has guaranteed access to the financial services, crucial for reconstruction efforts through the agreement’s facilitation of cross-border data flows. Ukrainian businesses will also be able to trade more efficiently and cheaply with the UK through electronic transactions, e-signatures, and e-contracts.

Department for Business and Trade mobilises UK businesses to engage in future reconstruction projects in Ukraine with a major conference; The Road to Ukraine Recovery Conference, geared towards supporting Ukraine’s National Recovery Plan opened with a welcome from the Business and Trade Secretary. This event and our mobilisation of UK industry are crucial steppingstones to our route to the Ukraine Recovery Conference in London in June.

The UK pledges to extend the removal of tariffs on all Ukrainian products until March 2024

Since June 2022, UK negotiators have worked at a record pace with their Ukrainian counterparts to deliver a deal after President Zelenskyy highlighted the vital role Ukraine’s first-ever digitally focused trade agreement could play in bolstering his country’s economy.

This ground-breaking new Digital Trade Agreement (DTA) will help Ukraine support its economy through the current crisis and lay the foundations for its recovery and revival.

Business and Trade Secretary Kemi Badenoch MP said:

“The historic digital trade deal signed today paves the way for a new era of modern trade between our two countries.

We are also extending tariff-free trade on imports from Ukraine to early 2024, providing much-needed support to Ukrainian businesses.

These initiatives will help protect jobs, livelihoods and families now, and in Ukraine’s post-war future.” 

First Deputy Prime Minister and Minister of Economy for Ukraine, Yuliia Svyrydenko, said:

“This digital trade agreement illustrates that Ukrainian IT companies operating in Ukraine are in demand around the world, despite all the challenges of war.

The UA-UK Digital Trade Agreement has enshrined core freedoms for trade in digital goods and services. Ukraine believes that an open and free framework for the digital economy is the best investment in future-oriented development.”

The UK also continues to support Ukraine through decisive sanctions against Russia. The UK and its allies have introduced the most severe economic sanctions ever imposed on a major economy, including £20 billion (96%) of UK-Russia goods trade from 2021.

Sanctions have profound and damaging consequences for Putin’s ability to wage war. Since the start of the invasion, UK goods imports from Russia have fallen by 99%, and goods exports to Russia have fallen by 80%.

For information on the UK-Ukraine Digital Trade Agreement and how it will benefit businesses: https://www.gov.uk/government/collections/uk-ukraine-digital-trade-agreement

While you are here you may be interested in some Strong & Herd LLP training courses & live clinics related to this topic:

Understanding Origin & Preference

Understanding Free Trade Agreements

Focus On: Embargoes, Sanctions and End-Use Controls