Ukraine - United Kingdom Free Trade and Strategic Partnership (2020) - Electronic Database of Investment Treaties (EDIT)

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Ukraine - United Kingdom Free Trade and Strategic Partnership (2020)

Title

POLITICAL, FREE TRADE AND STRATEGIC PARTNERSHIP AGREEMENT BETWEEN THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND AND UKRAINE

Preamble

PREAMBLE

THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND, hereinafter referred to as "the United Kingdom" or "the UK", of the one part, and UKRAINE, of the other part, hereinafter jointly referred to as "the Parties",

TAKING ACCOUNT of the active development of bilateral relations between the Parties as well as their desire to strengthen and widen their relations and strategic partnership;

COMMITTED to a close and lasting relationship that is based on common values, namely respect for democratic principles, the rule of law, good governance, human rights and fundamental freedoms, including the rights of persons belonging to national minorities, non-discrimination of persons belonging to minorities and respect for diversity, human dignity and commitment to the principles of a free market economy;

RECOGNISING that the Parties share common values and are committed to promoting those values;

CONVINCED of the need to help strengthen the atmosphere of friendship, mutual confidence and respect, understanding and cooperation in international relations and determined to play an active part in this process;

CONFIRMING that the United Kingdom acknowledges the EU membership aspirations of Ukraine and welcomes its European choice, as well as recognising the significant progress Ukraine has made in reforms to this end;

RECOGNISING Ukraineâs continuing reform of its defence and security sectors, its strong commitment and contribution to international security, its Euro-Atlantic aspirations towards NATO membership and the progress it has made in this regard;

CONFIRMING that the United Kingdom will continue to support the political, socio-economic, legal and institutional reforms in Ukraine with the aim of building a developed and sustainable democracy and a strong market economy;

COMMITTED to implementing all the principles and provisions of the United Nations Charter, the Organization for Security and Cooperation in Europe (OSCE), in particular the Helsinki Final Act of 1975 of the Conference on Security and Cooperation in Europe, the concluding documents of the Madrid and Vienna Conferences of 1991 and 1992 respectively, the Charter of Paris for a New Europe of 1990, the United Nations Universal Declaration on Human Rights of 1948 and the European Convention for the Protection of Human Rights and Fundamental Freedoms of 1950;

CONSCIOUS of their responsibility to help preserve peace and strengthen security in Europe and the whole world;

DESIROUS of strengthening international peace and security as well as engaging in effective multilateralism and the peaceful settlement of disputes, in particular by closely cooperating, to that end, within the framework of the UN, the OSCE, the Council of Europe and other international organisations or entities of which the Parties are members;

REAFFIRMING the willingness of the Parties to respond jointly to regional and global security threats to comply with and restore the international order and international law;

EMPHASISING that in international relations it is impermissible for the threat or use of force to be employed as a means of settling disputes, and that all international disputes should be settled exclusively by peaceful means;

COMMITTED to promoting the independence, sovereignty, territorial integrity and inviolability of borders in accordance with international law, the UN Charter, the Helsinki Final Act of 1975 of the Conference on Security and Cooperation in Europe and the relevant resolutions of the UN Security Council and the General Assembly;

FULLY SUPPORTING the firm commitment of Ukraine to peace and security, and its efforts to restore through peaceful settlement Ukraineâs sovereignty and territorial integrity within its internationally recognised borders;

RECOGNISING that Russia's hostile actions against Ukraine undermine Ukraine's sovereignty and territorial integrity in violation of international law;

COMMITTED to strictly adhering to the policy of non-recognition of Russia's attempted annexation of the Autonomous Republic of Crimea and the city of Sevastopol;

DESIROUS of achieving an ever-closer cooperation on bilateral, regional and international issues of mutual interest;

COMMITTED to reaffirming the international obligations of the Parties to fighting against the proliferation of weapons of mass destruction, related materials and their means of delivery, and to cooperating on arms control and international efforts on disarmament;

REAFFIRMING the importance and efficiency of the security assurances enshrined in the Budapest Memorandum on Security Assurances in Connection with Ukraineâs Accession to the Treaty on the Non-Proliferation of Nuclear Weapons of 5 December 1994 (the Budapest Memorandum);

DESIROUS of achieving a high level of economic cooperation, inter alia through a Free Trade Area (FTA) as an integral part of this Agreement, in compliance with rights and obligations arising out of the World Trade Organisation (WTO) membership of the Parties;

COMMITTED to developing a new climate conducive to economic relations between the Parties, and above all for the development of trade and investment and stimulating competition;

ACKNOWLEDGING the need for enhanced energy cooperation, and the commitment of the Parties to ongoing implementation of the Energy Charter Treaty;

COMMITTED to enhancing cooperation in the areas of energy, energy security, energy saving, energy efficiency and the use of renewable energy sources, facilitating the development of appropriate infrastructure and achieving a high level of nuclear safety and security;

COMMITTED to enhancing cooperation on legal migration based on reciprocity and equity and to cooperating on tackling illegal migration and trafficking in human beings;

RECOGNISING the importance of creating the most favourable conditions for entry and stay of nationals of the Parties in the territory of the other Party and of improving the well-managed and secure mobility of people;

COMMITTED to combating transnational organised crime, including, amongst others, money laundering and smuggling, to reducing the supply of and demand for illicit drugs and to intensifying cooperation in the fight against terrorism;

AGREEING that environmental protection is a high priority;

DESIROUS of promoting cooperation in the field of health care and public health protection;

COMMITTED to enhancing cooperation aimed at protecting and improving the environment and the principles of sustainable development and green economy;

COMMITTED to enhancing people-to-people contacts, including through cooperation and exchange in the fields of science and technology, business, youth, education, culture and sport;

RECOGNISING the value of cooperation between the regional bodies of each Party;

TAKING INTO ACCOUNT that this Agreement will not prejudice and leaves open future developments in relations between the Parties;

RECOGNISING that the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Ukraine, of the other part, done at Brussels on 27 June 2014 (the EU-Ukraine Association Agreement) will cease to apply to the United Kingdom at the end of any transitional arrangement during which the rights and obligations under that Agreement continues to apply to the United Kingdom;

RECOGNISING that the Treaty on the Principles of Relations and Co-operation between the United Kingdom of Great Britain and Northern Ireland and Ukraine, done at London on 10 February 1993, will cease to have effect from the date of entry into force of this Agreement;

HAVE AGREED AS FOLLOWS:

Body

Article 1. Objectives

1. A strategic partnership is hereby established between the United Kingdom, of the one part, and Ukraine, of the other part.

2. The Parties identify the following key aims of their strategic partnership:

(a) developing political and economic cooperation based on common values;

(b) providing an appropriate framework for a Strategic Partnership Dialogue in all areas of mutual interest, in accordance with Article 4 and Title VII of this Agreement;

(c) promoting, preserving and strengthening peace and stability in the regional and international dimensions in accordance with the principles of the United Nations Charter and of the Helsinki Final Act of 1975 of the Conference on Security and Cooperation in Europe and the objectives of the Charter of Paris for a New Europe of 1990, as well as with regard to the principles set out in the Budapest Memorandum;

(d) strengthening engagement for peaceful resolution of the conflict caused by Russia's hostile actions, in full respect of the sovereignty and territorial integrity of Ukraine within its internationally recognised borders, as well as for economic recovery and reintegration;

(e) supporting Ukraine's continuing political, economic, defence and security reforms, which are aimed at realising its European and Euro- Atlantic aspirations, including towards EU and NATO membership;

(f) cooperating on the international stage in order to maintain the policy of non-recognition of Russia's attempted annexation of the Autonomous Republic of Crimea and the city of Sevastopol until the full restoration of the territorial integrity and sovereignty of Ukraine;

(g) further developing a close relationship in the field of security and defence to tackle threats to peace and stability;

(h) establishing conditions for enhanced economic and trade relations, including by setting up a Free Trade Area as stipulated in Title IV (Trade and Trade-related Matters) of this Agreement;

(i) enhancing cooperation in the field of justice, freedom and security with the aim of reinforcing the rule of law and respect for human rights and fundamental freedoms;

(j) enhancing interaction of law enforcement agencies and the judiciary of the Parties with the aim of counteracting common transnational criminal threats as well as corruption;

(k) supporting and developing cooperation in the fields of education, science, culture, youth and sport with the aim of fostering people-to-people ties and collaboration between the Parties and their institutions operating in these domains;

(l) establishing conditions for increasingly close cooperation in other areas of mutual interest.

Title I. GENERAL PRINCIPLES

Article 2.

1. Respect for democratic principles, human rights and fundamental freedoms, as defined in particular in the Helsinki Final Act of 1975 of the Conference on Security and Cooperation in Europe and the Charter of Paris for a New Europe of 1990, and other relevant human rights instruments, among them the UN Universal Declaration of Human Rights of 1948 and the European Convention for the Protection of Human Rights and Fundamental Freedoms of 1950, and respect for the principle of the rule of law shall form the basis of the domestic and external policies of the Parties and constitute essential elements of this Agreement.

2. Promotion of respect for the principles of sovereignty and territorial integrity, inviolability of borders and independence also constitutes an essential element of this Agreement.

3. Cooperating and contributing to countering the proliferation of weapons of mass destruction, related materials and their means of delivery through full compliance with, and national implementation of, the Parties' existing obligations under international disarmament and non-proliferation treaties and agreements and other relevant international obligations also constitutes an essential element of this Agreement.

4. The Parties reaffirm their respect for the principles set out in the Budapest Memorandum.

5. The Parties recognise that the principles of a free market economy and sustainable development underpin their relationship.

6. The Parties reaffirm their commitment to the rule of law, good governance, the fight against corruption, as well as the fight against the different forms of transnational organised crime and terrorism.

7. The Parties shall develop their relations in strict observance of the principles of international law and in good faith.

Title II. STRATEGIC POLITICAL DIALOGUE AND COOPERATION IN THE FIELD OF FOREIGN AND SECURITY POLICY

Article 3. Aims of Strategic Political Dialogue

1. Strategic political dialogue in all areas of mutual interest shall be further developed and strengthened between the Parties through the Strategic Partnership Dialogue created in Article 400 of this Agreement.

2. The aims of the strategic political dialogue shall be:

(a) to increase political, foreign and security policy cooperation and effectiveness;

(b) to promote the peaceful resolution of the conflict caused by Russia's hostile actions, in full respect of the sovereignty and territorial integrity of Ukraine within its internationally recognised borders;

(c) to cooperate in international fora in order to maintain the policy of non- recognition of Russiaâs attempted annexation of the Autonomous Republic of Crimea and the city of Sevastopol until the full restoration of the territorial integrity and sovereignty of Ukraine;

(d) to seek to restore and maintain peace and promote international stability and security based on effective multilateralism, as well as to jointly address global and regional challenges and threats;

(e) to enhance security and defence cooperation, as well as seck to establish closer collaboration between the defence industries of the two nations;

(f) to progress security and defence sector reforms to align with the standards upheld by NATO member states;

(g) to contribute to consolidating domestic reforms aimed at strengthening sustainable democracy, the rule of law and developing a strong market economy;

(h) to strengthen respect for democratic principles, the rule of law and good governance, human rights and fundamental freedoms, including the rights of persons belonging to national minorities, non-discrimination of persons belonging to minorities and respect for diversity;

(i) to enhance cooperation in the field of justice, law enforcement and the fight against crime;

(j) to enhance cooperation in the field of migration, including mobility of citizens.

Article 4. Fora for the Conduct of the Strategic Partnership Dialogue

1. The Parties shall hold annual meetings of the Strategic Partnership Dialogue at high official or highest governmental level on all aspects of bilateral cooperation, including security, economic and migration issues, as well as on international and regional issues of mutual interest, in accordance with Title VII of this Agreement. For the purposes of this Article, the UK recognises migration under the UN Global Compact for Migration, including but not limited to, visas, border security and returns policy.

2. Notwithstanding paragraph 1 of this Article, the Strategic Partnership Dialogue may also meet at any time and at any level, including at short notice where a situation so requires, to address any aspect of bilateral cooperation, as well as any international and regional issues of mutual interest.

3. The Parties shall encourage exchanges between members of their respective legislatures. They shall encourage cooperation and exchanges of experience in parliamentary procedures and practice, and in the preparation of legislation, and nothing in this Agreement shall restrict cooperation between the UK Parliament and the Verkhovna Rada of Ukraine.

4. The Parties shall also encourage contacts and exchanges of experience in public administration, in the judiciary and between legal bodies, and between press and media organisations.

Article 5. Dialogue and Cooperation on Domestic Reform

The Parties shall cooperate in order to ensure that their internal policies are based on principles common to the Parties, in particular stability and effectiveness of democratic institutions and the rule of law, and on respect for human rights and fundamental freedoms, in particular as referred to in Article 13 of this Agreement.

Article 6. Foreign and Security Policy

1. The Parties shall, through the Strategic Partnership Dialogue created in Article 400 of this Agreement, intensify their dialogue and cooperation in the area of foreign and security policy and shall strengthen practical cooperation in the areas of conflict prevention, peaceful conflict resolution and crisis management, regional stability, non-proliferation, arms control and arms export control and international efforts on disarmament.

2. The Parties shall work together bilaterally and within international organisations to respond effectively to regional and global security threats.

3. The Parties shall aim for the convergence of their foreign policy positions in the international arena on matters of common interest.

4. The Parties shall intensify the implementation of defence and security cooperation and assistance programs, as well as military and military-technical cooperation with the aim of further developing a close partnership in the field of security and defence, including through entering into relevant agreements.

Article 7. Peaceful Conflict Resolution and Post-Conflict Recovery

1. The Parties reiterate their commitment to peace and security in Ukraine, including the resolution of the conflict caused by Russia's hostile actions, in full respect of the sovereignty and territorial integrity of Ukraine within its internationally recognised borders. Conflict resolution will constitute one of the central subjects of the strategic political relationship between the Parties in accordance with Article 3 of this Agreement, as well as in dialogue in other bilateral and multilateral formats.

2. The United Kingdom reaffirms its commitment to advocating internationally the policy of non-recognition of Russia's attempted annexation of the Autonomous Republic of Crimea and the city of Sevastopol.

3. The Parties underline the necessity of maintaining peaceful resolution of the Russia-Ukraine conflict high on the international agenda and express their commitment in this context to coordinate efforts with other relevant international actors and organisations, including by maintaining international pressure on Russia and the use of sanctions, as appropriate.

4. The United Kingdom will support Ukraine's efforts aimed at the post-conflict recovery of the Donbas, in particular in rebuilding the economy and infrastructure of the liberated territories and the implementation of social programs to reintegrate the local population.

Article 8. Regional Stability

1. The Parties shall intensify their joint efforts to promote stability, security and democratic development in the region, as well as to work together for the prevention and peaceful settlement of regional conflicts.

2. These efforts shall follow commonly shared principles for maintaining international peace and security as established by the UN Charter, the Helsinki Final Act of 1975 of the Conference on Security and Cooperation in Europe and other relevant multilateral instruments.

Article 9. Military and Military-Technical Cooperation

1. The Parties shall enhance practical cooperation in conflict prevention and crisis management.

2. Cooperation in this field shall be based on modalities and arrangements between the United Kingdom and Ukraine on consultation and cooperation on crisis management.

3. The Parties shall effect military and military-technical cooperation in areas of mutual interest, including but not limited to information on the development and implementation of national military doctrines, advice on defence policy and management, participation in joint exercises, military intelligence, the training of service personnel, legal matters of military service, cooperation in areas of military healthcare, identifying opportunities to purchase military equipment, spare parts and supplies, as well as improvement of defence and military capabilities.

Article 10. Non-proliferation of Weapons of Mass Destruction

1. The Parties consider that the proliferation of weapons of mass destruction, related materials and their means of delivery, to both state and non-state actors, represents one of the most serious threats to international stability and security. The Parties shall therefore cooperate and contribute to countering the proliferation of weapons of mass destruction, related materials and their means of delivery through full compliance with, and national implementation of, their existing obligations under international disarmament and non-proliferation treaties and agreements and other relevant international obligations, taking into account the provisions in nuclear non-proliferation treaties relating to civil nuclear energy.

2. The Parties shall cooperate and contribute to countering the proliferation of weapons of mass destruction, related materials and their means of delivery by:

(a) taking steps to sign, ratify or accede to, as appropriate, and fully implement all other relevant international instruments, and

(b) further improving the system of national export controls, in order to control effectively the export and transfer as well as transit of goods related to weapons of mass destruction, including through the effective implementation of end-use based "catch-all" controls and controls on transfer of sensitive technology by intangible means and provision of Technical Assistance that may contribute to the proliferation of weapons of mass destruction and means for their delivery, as well as effective sanctions for violations of export controls.

Article 11. Arms Control, Arms Export Control and the Fight Against Illicit Trafficking of Arms

1. The Parties shall develop further cooperation on arms control and international efforts on disarmament, as well as with the aim of dealing with the impact on the population and on the environment of abandoned and unexploded ordnance. Cooperation on arms control shall also include export control and the fight against illicit trafficking of arms, including small arms and light weapons. The Parties shall promote universal adherence to, and compliance with, relevant international instruments and shall aim to ensure their effectiveness, including through implementation of the relevant United Nations Security Council Resolutions.

2. The Parties reaffirm their commitment to contime the process of conventional arms control, including through the full implementation of the Treaty on Conventional Armed Forces in Europe.

Article 12. Fight Against Crime

1. The Parties shall work closely together in the fight against crime, including organised crime and cybercrime, trafficking in human beings, smuggling, money laundering, illegal international transactions in cultural art objects, civil aviation and navigation threats, as well as hybrid threats.

2. The Parties shall exchange experience and seek to enter into agreements to facilitate cooperation in this field.

Title III. JUSTICE, FREEDOM AND SECURITY

Article 13. Rule of Law and Respect for Human Rights and Fundamental Freedoms

1. In their cooperation on justice, freedom and security, the Parties shall attach particular importance to the consolidation of the rule of law and the reinforcement of institutions at all levels in the areas of administration in general and law enforcement and the administration of justice in particular. Cooperation shall, in particular, aim at strengthening the judiciary, improving its efficiency, safeguarding its independence and impartiality, and combating corruption. Respect for human rights and fundamental freedoms will guide all cooperation on justice, freedom and security.

2. Cooperation between the Parties, based on shared values, will reflect the balance between security on the one hand, and justice and freedom on the other.

Article 14. Protection of Personal Data

1. The Parties shall cooperate in order to ensure an adequate level of protection of personal data in accordance with the highest European and international standards, including the relevant Council of Europe instruments. Cooperation on personal data protection may include, inter alia, the exchange of information and of experts.

2. The Parties agree to cooperate in order to ensure that compliance with the relevant requirements for the protection of personal data are upheld when exchanging technical, operational and strategic information between law enforcement agencies.

Article 15. Cooperation on Migration, Asylum and Border Management

The Parties shall cooperate in the field of migration, asylum and border management, focusing jointly on:

(a) tackling the root causes of irregular migration, pursuing actively the possibilities of cooperation in this field with third countries and in international fora;

(b) establishing an effective and preventive policy against irregular migration, smuggling of migrants and trafficking in human beings including how to combat networks of smugglers and traffickers and how to protect the victims of such trafficking;

(c) establishing an inter-state dialogue on asylum issues and in particular on matters relating to the practical implementation of the UN Convention of 1951 relating to the Status of Refugees and the Protocol relating to the Status of Refugees of 1967 and other relevant international instruments, as well as ensuring the respect by the Parties for the principle of non- refoulement;

(d) further developing operational measures in the field of border management, subject to:

(i) cooperation on border management may include, inter alia, training, exchange of best practices including technological aspects, exchange of information in line with applicable rules and, where appropriate, exchange of liaison officers;

(ii) efforts of the Parties in this field will aim at the effective implementation of the principle of integrated border management;

(e) enhancing document security;

(f) developing an effective return policy; and

(g) exchanging views on the informal employment of migrants.

Article 16. Treatment of Workers

Subject to the laws, conditions and procedures applicable by the Parties, treatment accorded to workers who are nationals of one Party and who are legally employed in the territory of the other Party shall be free of any discrimination based on nationality as regards working conditions, remuneration or dismissal, compared to the nationals of that Party.

Article 17. Mobility of Workers

The Strategic Partnership Dialogue shall regularly review the granting of more favourable provisions for mobility of workers, including by providing access to professional training, in accordance with laws, conditions and procedures in force in the UK and Ukraine, and taking into account the labour market in the UK and Ukraine.

Article 18. Movement of Persons

The Parties shall establish cooperation aimed at facilitating movement of persons and shall, where the conditions for well-managed and secure mobility are in place, take gradual steps towards making it easier for citizens to travel to and visit each other's countries.

Article 19. Fight Against Money Laundering and Terrorism Financing

The Parties shall work together in order to prevent and combat money laundering and terrorism financing. To that end, the Parties shall enhance bilateral and international cooperation in this field, including at operational level. The Parties shall ensure implementation of relevant international standards, in particular those of the Financial Action Task Force (FATF).

Article 20. Cooperation In the Fight Against Illicit Drugs, and on Precursors and Psychotropic Substances

1. The Parties shall cooperate on issues relating to combating illicit trafficking in narcotic drugs, psychotropic substances and their precursors on the basis of commonly agreed principles along the lines of the relevant international conventions, and taking into account the 2009 Political Declaration and Plan of Action on International Cooperation towards an Integrated and Balanced Strategy to Counter the World Drug Problem and the outcome document of the 2016 United Nations General Assembly Special Session on the world drug problem "Our Joint Commitment to Effectively Addressing and Countering the World Drug Problem".

2. This cooperation shall aim to combat illicit drugs, reduce the supply of, trafficking in, and demand for, illicit drugs, and cope with the health and social consequences of drug abuse. It shall also aim at a more effective prevention of diversion of chemical precursors used for the illicit manufacture of narcotic drugs and psychotropic substances.

3. The Parties shall use the necessary methods of cooperation to attain these objectives, ensuring a balanced and integrated approach towards the issues at stake.