Today marks a significant milestone in UK-Ukraine relations as the UK-Ukraine Digital Trade Agreement (DTA) comes into force. This agreement is not just a step, but a leap towards revolutionising trade between the two nations. It makes trade faster, cheaper, and more accessible, thereby boosting both economies. The DTA is one of the first agreements of its kind and represents a major step towards adopting digital trading systems. These systems are particularly crucial for Ukraine, where the ongoing conflict has severely impacted physical trading infrastructure.

As one of the largest global exporters of information technology services, Ukraine stands to gain significantly from this digital trade agreement. The new DTA facilitates smoother trade between the UK and Ukraine and signals a broader shift towards digital commerce, which is becoming increasingly important in today's interconnected world. This agreement opens the door to new business opportunities in both countries, laying the groundwork for a more prosperous and resilient economic partnership.

Business and Trade Secretary Jonathan Reynolds said:

“We're modernising our trade relationship with Ukraine with one of the world's first digital only trade agreements.”

“Greater digitalisation of the economy is an important step in supporting Ukraine's economy and their fight for independence. This government will continue to lead the way in our unwavering support for Ukraine and its people.”

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.”

Read the full press release here

In the four quarters leading up to the end of Q1 2024, total trade in goods and services between the United Kingdom and Ukraine reached £1.6 billion. A significant portion of this trade involves digitally delivered services, which have become increasingly vital, particularly in the context of the ongoing conflict in Ukraine. In 2021 alone, the export of digitally delivered services from the UK to Ukraine was valued at £151 million, representing 54% of the UK's total service exports to Ukraine.