ZELENSKYY AND JOHNSON SIGN A TRADE DEAL TO REPLACE EU-UKRAINE ASSOCIATION AGREEMENT

Originally published in IR Insider in October 2020 (IR Insider page archived)

Ukranian President Volodymyr Zelenskyy and Prime Minister of the United Kingdom Boris Johnson at Downing Street in London, UK. Photo: AP / Daily Sabah

During the Ukrainian President Volodymyr Zelenskyy’s two-day visit to London, President Zelenskyy and UK Prime Minister Boris Johnson signed the “Political, Free Trade and Strategic Partnership Agreement" on Oct. 8. This new deal addresses trade relations between the two countries, including but not limited to preferential free trade arrangements, tariffs, and quotas.

As Britain seeks to transition out of the European Union by Dec. 31, it will aim to form bilateral treaties with the countries it used to trade with under arrangements set by the EU, including Ukraine, for which the UK has been following trade policies stated in the EU-Ukraine Association Agreement. Under the new bilateral arrangement, Ukrainian and British businesses are expected to enjoy the same level of liberal trade as they did pre-Brexit.

In 2019, trade worth £1.5 billion took place between the two countries, including £182 million for iron and steel, £177 million for cereal, £79 million for aircrafts, £61 million for medicinal and pharmaceutical products, and £52 million for cars. The present partnership agreement is expected to expand trade between Minsk and London while focusing on the defense, infrastructure, agriculture, healthcare, and energy sectors in particular.

Ranil Jayawardena, the UK’s Minister for International Trade, was also expected to sign a memorandum of understanding to identify sectors that could be advantageous to Ukraine from the backing of UK Export Finance (UKEF). With the backing of UKEF, British exports are expected to receive up to £2.5 billion for trade with Ukraine.

The new agreement also reaffirms the UK’s support for Ukrainian sovereignty as it seeks to resist “Russia’s malign influence,” in Johnson’s words, in the Crimean region. In 2014, when Russia initially invaded Crimea, the UK spoke out against Moscow’s actions, which contributed to EU sanctions that have been imposed against Russia ever since. To facilitate resistance to pro-Russia groups, the UK has helped train Ukrainian armed forces since 2015. It plans to establish a “maritime training initiative” and invest £1.25 billion in building new military vessels for the Ukrainian navy.

In addition to trade, the agreement reflects the two countries’ commitment to non-violent conflict resolution, furthering democracy and human rights, combating climate change, and finally, cooperative humanitarian, defense and political support for one another. President Zelenskyy and Prime Minister Johnson also expressed “concern” for the ongoing Belarusian protests against the supposedly illegitimate reelection of the country’s six-time President Alexander Lukashenko.

With Brexit in its transition phase, more agreements of the kind between Ukraine and the UK can be expected, as Prime Minister Johnson tries to ensure the UK’s smooth exit from the EU, which has regulated the country’s relations with non-EU states for the last 47 years.