Canada has agreed to sign off on its side of a new trans-Pacific trade agreement in a Brexit boost, which could bolster trade with the UK and support British exporters.

Mark Carney, the Canadian Prime Minister, announced Canada will agree to the UK’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in a meeting with Sir Keir Starmer.

The CPTPP is a major trade bloc whose members - Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam, and now the UK – have a combined GDP of £12trillion.

The UK was left free to join the bloc after leaving the European Union five years ago, following the 2016 EU referendum.

The UK’s accession is estimated to benefit all UK nations and regions in the long run, relative to 2019 values, with boosts of £240million for Scotland, £110million for Wales, and £70million for Northern Ireland.

All English regions are also estimated to gain, including £450million for the South East and £310million for the North West.

Under the deal, businesses across the country face lower tariffs and fewer barriers when selling to economies across three continents, with the financial services, manufacturing and food and drink sectors in particular set to benefit.

The Canadian Parliament is now expected to pass a new law ratifying the UK's involvement in the deal this Autumn.

Canada has agreed to the UK joining the CPTPP

The deal will come into force in Canada 60 days after its legislators have ratified the deal.

No10 said the pair had a "warm and productive conversation, agreeing that as two like-minded leaders, there is huge potential to drive forward our partnership for the benefit of British and Canadian people".

A Downing Street spokesman said on Sunday: "This will bring huge benefits to UK businesses by lowering tariffs when buying from and selling to Canada."

The UK officially acceded to CPTPP on December 15, 2024.

The agreement is now in force with Australia, Brunei, Chile, Japan, Malaysia, New Zealand, Peru, Singapore, and Vietnam, as they have ratified the terms of the UK’s accession.

Mark Carney and Keir Starmer ahead of the G7 summit

Starmer and Carney also discussed worsening global tensions, focusing particularly on the situation in the Middle East, where the UK is urging Israel and Iran to de-escalate, and Ukraine.

A Downing Street spokesman said: "They began by discussing the grave situation in the Middle East, agreeing that the upcoming G7 Summit presented an opportunity to come together with partners in pursuit of de-escalation."

He added: "The leaders agreed that there is no doubt that everyone needs to step up at such a volatile time for the world.

"The Prime Minister reiterated that all Nato allies must come together to advance our collective security in the coming years."

Starmer and Carney also discussed the situation in the Middle East and Ukraine

The two leaders also said they would set up a "joint taskforce to turbocharge progress on other areas of mutual benefit, including technology and artificial intelligence – in support of shared growth and our national security".

This taskforce will "look to make progress on the wider UK-Canada Free Trade Agreement", No10 said.

The spokesman added: "The Prime Minister said that the world has changed when it comes to trade and the economy, so he wants teams to go as far and as fast as possible, because it is in all of our interests to lower trade barriers with our closest partners."