The Northern Ireland Secretary Mr Paul Murphy last night said the UDA statement, that it is to end all paramilitary activity for 12 months, is a "positive move in the right direction" but one that must result in a permanent end to paramilitary activity in all of its aspects.
Yesterday, the Ulster Freedom Fighters and Ulster Defence Association said that its units "have begun to observe a 12-month period of military inactivity".
British security sources say the UDA is heavily involved in drug dealing and racketeering, and have blamed it for the killing of a number of Catholics in recent years.
The organisation declared a ceasefire in 1994 in response to the IRA's ceasefire a few months earlier.
But in late 2001, it was ruled the ceasefire had broken down after the UDA were accused of being behind a wave of pipe bomb attacks on Catholic homes.
SDLP leader Mark Durkan gave a "qualified welcome" to the announcement. "If it means saving lives, then people will welcome it" Mr Durkan said.
"A qualified ceasefire from a dubious group can only get a qualified welcome from a sceptical community," he added.