UK announces digital trade agreement with Ukraine
Aims to streamline digital border operations
The UK and Ukraine have reached an agreement in principle on a new Digital Trade Agreement (DTA), to support the Ukrainian economy in the wake of Russia's illegal invasion.
The DTA was struck at a meeting in London between Trade Secretary Kemi Badenoch and Yulia Svyrydenko, Ukraine's First Deputy Prime Minister and Minister of Economy.
The agreement should ensure access to the UK's financial services sector for Ukrainian firms, assisting recovery efforts and fostering greater collaboration on cybersecurity and cutting-edge technology.
The Department for International Trade says this, Ukraine's first-ever digital trade agreement, will help the country's economy get through the present crisis and set the groundwork for future growth.
Digital trade is especially crucial at present, when warfare and damage to Ukrainian infrastructure has made it more difficult to trade physically.
For instance, it is important for individuals to be able to use digital solutions to prove that they are who they claim to be, despite the loss of important documents or displacement across borders.
To address such issues, the agreement offers a framework for both countries to work together to enhance interoperability between their respective digital ID systems.
Ukrainian firms will have easier access to the digitally delivered goods and services they need by streamlining digital border operations. They will also be able to do business with the UK more efficiently and affordably thanks to electronic transactions, e-contracts and e-signatures.
At this time the deal is an agreement in principle, and has not yet been finalised with a legally binding text.
Deals like this tend to formally agree cooperation on things like cyber security, AI and emerging technologies. Sabina Ciofu an international trade expert for industry body TechUK, told the BBC these could translate into "pilot projects with regulators and industry on both sides.".
The agreement comes after UK reduced all taxes on Ukrainian products to zero as part of a free trade pact with the war-torn country.
The UK and Singapore reached a similar agreement earlier this year. Last week, a memorandum was signed to strengthen cooperation in financial technology.
Commenting on the UK-Ukraine DTA, Badenoch said: "The landmark digital trade deal agreed today between our two countries paves the way for a new era of modern trade between us.
"This agreement will mean our businesses and governments can collaborate even more and ensure Ukrainians have access to essential goods and services digital trade opens up. This will help protect jobs, livelihoods and families now and in Ukraine's post-war future."
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 UK-UA 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."
Julian David, CEO of TechUK, said the DTA would provide new opportunities for the UK and Ukraine to collaborate on technological and digital projects.
The deal comes as Russian hackers are launching attacks against Ukrainian companies and infrastructure.
Last month, the British government said it has spent nearly £6.4 million on an initiative to defend Ukraine's critical national infrastructure and essential public services from Russian cyberattacks.
Foreign Secretary James Cleverly said the UK activated the Ukraine Cyber Programme immediately after the Russian incursion in February, to safeguard Ukraine against an upsurge in digital strikes.
Details of the programme were not made public until last month to protect its operational confidentiality.