LONDON – The British government will move to improve relations and prioritize a deep and comprehensive trade relationship with Ukraine after the United Kingdom leaves the European Union, a top UK government minister pledged in London on Oct. 9.
Secretary of State for International Trade Liam Fox said that Britain and Ukraine had started developing a free trade agreement that would seek to replicate the conditions of the existing Deep and Comprehensive Free Trade Agreement between Ukraine and the EU.
On the same day, Bob Seely, a member of parliament from the UK’s governing Conservative Party and an elected member of the Foreign Affairs Committee, said at the House of Commons, the UK parliament, that Ukraine and the United Kingdom were “natural allies” and that Britain had so far been “too soft” on Russia.
As the UK readies itself to leave the European bloc, it’s faced with the daunting task of negotiating dozens of new trade deals around the world.
In Britain, there is still significant opposition to the UK leaving the EU, and hope among some that the country might not in fact leave the union (polls show most voters now want the UK to remain in the EU) – but most are steeling themselves for it eventually happening.
Fox’s speech took place at the Savoy Hotel in central London on the third day of Ukrainian Week, an occasion that saw a string of events focused on British-Ukrainian relations take place across the UK capital.
“Last year the total trade between Ukraine and the UK topped 1 billion pounds,” Fox said. “(This followed) two years of strong growth across the board, in goods and services, imports and exports.”
“British companies, like many others across the world, are increasingly aware of all that Ukraine has to offer, and the huge commercial opportunities that exist in the country… GlaxoSmithKline, Astra Zeneca and Vodafone, to name just a few, have substantially increased their operations in Ukraine in recent years,” Fox added.
Fox called Ukraine “the historic bread basket of Europe” and said his department is taking steps to improve bilateral relations in this agriculture and agritech.
“We’re offering British expertise in agricultural machinery, grain storage, and food processing… I don’t need to tell the people in this room that Ukraine is a nation with a vast amount of untapped economic potential,” he said.
However, he also highlighted the challenges that the country still faces, and mentioned that these internal problems could continue to deter investors if they’re not tackled.
Among the problem issues, Fox named corruption, inefficient public ownership, as well as “overzealous and stifling bureaucracy” as the most significant obstacles to foreign investment, economic output and prosperity.
But he said that the United Kingdom was more committed than ever to helping with Ukraine’s reform process and reaffirmed the strength of that partnership.
“This year, we are delivering a 35-million pound package to support reforms in good governance, anti-corruption and defense… And we’re helping British companies to share their expertise with their Ukrainian counterparts, opening new commercial opportunities across the economy.”
Fox also reaffirmed his government’s commitment to a robust stance on Russian aggression and the defense of the sovereignty and territorial integrity of Ukraine.
He said that the United Kingdom “would not waver” in its commitment to sanctions against the Russian Federation, and said he supported Foreign Secretary Jeremy Hunt’s recent call for even more sanctions against Russia.
“We’re building a firm, united front with our allies,” Fox said.
“We’re here today not only to deepen the commercial ties between our two nations, but as a show of solidarity and unity in the face of external aggression.”
