UK and Ukraine sign an agreement on digital commerce: why is it important for the country?

Ukraine and the UK signed an agreement on a simplified digital trade regime. This was stated by Kemi Badenoch, UK Foreign Secretary for Trade and Trade, Reuters reported.

Thanks to the signed agreement, Ukraine will gain guaranteed access to financial services vital to the country’s recovery, thanks to the simplification of cross-border data flows.

The historic digital trade agreement signed today paves the way for a new era of modern trade between the two countries.”

In addition, the UK will extend duty-free imports from Ukraine until the beginning of 2024.

“These initiatives will help save jobs and provide livelihoods for families in Ukraine’s present and post-war future,” Badenoch said.

What is the essence of the agreement between Ukraine and England?

In November 2022, the Ministry of Economy of Ukraine announced that the agreement between the countries provides:

• reducing the cost of trade administration through the introduction of digital solutions and technologies;
• introducing the “single window” principle for cooperation between merchants and government structures;
• free data exchange;
• strengthening consumer protection in the online space;
• financial information exchange;
• tax-free digital content;
• cooperation on the recognition of digital documents, etc.

Meanwhile, on March 18, 2023, it was learned that the “Grain Agreement”, which guarantees the safe passage of ships carrying vital export grains from Ukraine, was extended. According to the UN, we are talking about an extension of 120 days, not 60 as previously reported. Earlier, the Russian Ministry of Foreign Affairs announced that it had agreed to a 60-day extension of the agreement, mediated by the United Nations and Turkey, and Kremlin spokesman Dmitry Peskov described the move as a “goodwill gesture”.