The United Kingdom signed a deal to join a trade pact of Pacific and Asian nations that make up over a tenth of the world's gross domestic product (GDP).
Kemi Badenoch, the U.K.’s Secretary of State for Business and Trade, formally signed a treaty July 16 to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) trade deal that exists between 11 countries: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
The U.K. is the first European country to join the trade agreement and is projected to be the pact’s second-biggest economy behind only Japan, according to BBC News.
Before the U.K. joined the trade deal, members of the CPTPP made up 13% of the world’s GDP. The addition of the U.K. brings the group’s value to roughly £11 trillion ($14.389 trillion).
The gains from joining the trade pact are only expected to contribute about 0.08% to the U.K.’s GDP over the next ten years. However, the agreement will likely reduce restrictions on digital trade and other services, which aligns with the U.K.'s long-term economic ambitions while tying the country to some of the world’s fastest-growing economies.
