On 24 August, the Government launched negotiations with Ukraine towards a bilateral digital trade agreement, the proposed UK-Ukraine digital trade agreement.
The UK is standing shoulder to shoulder with Ukraine in the face of unjustified aggression from Putin, and I remain committed to ensuring that trade policy plays its part in supporting Ukraine now and throughout its economic reconstruction. In addition to the immediate actions we have already taken to liberalise tariffs and starve Putin’s war machine of funds, we need to put in place longer-term measures to support Ukraine and play our part in securing its future as a prosperous, stable and democratic partner in Europe.
The UK is increasingly recognised as a global leader in digital trade, with a network of international agreements that drive productivity, jobs and growth. In 2021, under its G7 presidency, the UK brokered agreement on the ground-breaking G7 digital trade principles, while earlier this year the UK-Singapore digital economy agreement—the world’s most innovative trade agreement—entered into force.
As a result, in my discussions with our Ukrainian partners, we have agreed that we should seek to negotiate a digital trade agreement to play an important role in supporting Ukraine’s reconstruction objectives. Ukraine has strong digital ambitions, and it has identified greater digitalisation of the economy as one of its areas of focus.
Ukraine sees digital trade as part of its vision for the future, and the UK is ideally placed to help Ukraine benefit from the opportunities this presents.
In addition to furthering our vital support for Ukraine, this agreement will also be good for British businesses. The current UK-Ukraine free trade agreement contains limited digital and e-commerce provisions. Expanding these commitments will remove barriers to digital trade and enable UK exporters to service Ukrainian markets more easily.
As digital trade is now the foundation of modern global trade, securing this agreement will send a strong signal of the United Kingdom’s support for our Ukrainian allies in response to the ongoing conflict, and further cement our position as a forward-thinking trading partner in the modern global economy.
I will continue to keep the House updated as negotiations develop.
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