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Digital trade between the UK and Ukraine could be set to grow after an agreement entered force yesterday (1 September).
The British government states that the UK-Ukraine Digital Trade Agreement (DTA) will allow businesses “on both sides to benefit from quicker and cheaper trade”.
It also notes the deal’s emphasis on digital trade in the context of the ongoing war in the country, in which the cross-border movement of physical goods is often affected. As pointed out by the Standard, the DTA is one of the world’s first digital-only trade agreements.
IT strength
Over half of the UK’s services exports to Ukraine are already delivered digitally to Ukraine, and the latter is among the world’s leading exporters of IT services.
Overall, UK-Ukraine trade reached £1.6bn in the year to Q1 2024, while digitally delivered services to Ukraine were worth £151m.
The Chartered Institute perspective
Marco Forgione, director general of the Chartered Institute of Export & International Trade, said that “this agreement is a landmark moment for digital trade and an important development for Ukraine’s recovery”.
“International trade is a force for good with a proven track record of bringing prosperity to communities and nations. Increasing trade between the UK and Ukraine will help rebuild Ukraine’s economy and help to address aspects of the ongoing cost of living crisis.
“We also welcome the UK government’s continued determination to use digital tools and technologies to strengthen its trading relationships and to reduce barriers to trade.
‘Modernising our trade relationship’
Business and trade secretary Jonathan Reynolds said the agreement represented the “modernising [of] our trade relationship with Ukraine”.
“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.”
Ukraine’s economy minister, Yuliia Svyrydenko, said that “the support of Ukraine from the UK is unprecedented”.
“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.”
TechBridge
The DTA follows the launch in January this year of the UK-Ukraine TechBridge, a programme aimed at increasing the collaboration between the two countries’ tech sectors.
UK tech firms have also provided free online training for Ukrainian companies, as well as expert insights at in-person meetings.
Pavlo Pikulin, the CEO of Ukrainian robotics startup Deus Robotics, also hailed the 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.”