After two years of planning, the UK-Ukraine Digital Trade Agreement (DTA) enters into force today, allowing businesses on both sides to benefit from quicker and cheaper trade.
The UK-Ukraine Digital Trade Agreement was set up as part of broader trade negotiations between the UK and Ukraine.
It was driven by the Conservative UK government under the leadership of the Department for International Trade, which was headed by then-Trade Secretary Anne-Marie Trevelyan.
The agreement is part of the UK’s efforts to strengthen trade ties with Ukraine and support Ukraine’s digital economy, especially in the context of the challenges posed by the ongoing conflict with Russia.
The digital trade agreement will 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 in goods and services between the UK and Ukraine was £1.6 billion in the four quarters to the end of Q1 2024. In 2021, the export of digitally delivered services to Ukraine was worth £151 million – 54% of our total service exports to Ukraine.
Former Conservative International Trade Secretary Anne-Marie Trevelyan, who led the charge on the agreement, 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.”
The agreement will facilitate smoother digital trade between the two countries, covering areas such as digital services, e-commerce, and data protection, and is a significant step in modernising the trade relationship between the UK and Ukraine.
The digital agreement is one of the first of its kind and opens the door to wider shifts to digital trading systems. Such digital systems are more important than ever for Ukraine as physical trading systems have been impacted by war.
Ukraine is one of the largest exporters of information technology services globally, with areas such as outsourcing, cybersecurity, artificial intelligence (AI) and mobile applications in rapid development before the war.
As a global leader in tech, the UK is ideally positioned to aid Ukraine’s post-conflict transition to a digital economy, with over half of our services exports to Ukraine already digitally delivered.
First Deputy Prime Minister and Minister of Economy of Ukraine Yuliia Svyrydenko said:
“The support of Ukraine from the United Kingdom is unprecedented. We have felt it from the very first days of the full-scale war. The digital trade agreement between our countries is another manifestation of solidarity and support.
“Implementing this agreement will deepen Ukraine’s participation in global supply chains, foster the development of small and medium-sized businesses, maintain free access for Ukrainian IT companies to the UK digital markets, and provide crucial support to our economy during the war and in the post-war reconstruction period.”
Sabina Ciofu, Associate Director, International Policy & Trade, TechUK said:
“The UK-Ukraine digital trade deal coming into force is a great step forward that will strengthen tech ties between both countries, and simplify and reduce the cost of trade for businesses, especially at a time when trade is made more difficult by Russia’s invasion of Ukraine.
“TechUK is looking forward to working with our sister organisation IT Ukraine and both governments to deliver on the promises of this agreement, especially around regulatory cooperation and emerging technologies.”
Pavlo Pikulin, CEO and founder at Deus Robotics said:
“We are deeply thankful to the UK Government, the Ministry of Digital Transformation of Ukraine, and the Ministry of Foreign Affairs of Ukraine for establishing the UK-Ukraine TechBridge programme.
“In essence, our successes in the UK thus far can be directly attributed to this initiative. TechBridge has provided us with everything essential for a tech startup to thrive in the UK — access to potential clients, partners, investors, and mentors. With this programme, you know who to talk to, and how and where to do it best.”
The agreement is part of a series of digital initiatives by the UK to support Ukraine’s digital economy. The UK-Ukraine TechBridge promotes collaboration and investment across the UK and Ukraine tech sectors.
Tech partnerships are also a key area of the digital trade agreement, supporting collaboration between the UK and Ukraine on areas like cybersecurity.
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