The United Kingdom has reached a new agreement with the European Union covering defense, trade, and fisheries. This signals a renewed willingness to advance their post-Brexit relationship.

Preliminary estimates suggest that renewed cooperation with the EU could add around $12 billion to the UK economy by 2040, helping the country offset some of the economic damage caused by Brexit.

The agreement was finalized during talks with European Commission President Ursula von der Leyen and other senior EU officials. It marks the first bilateral summit between the UK and the EU since Britain's departure from the bloc.

According to UK Prime Minister Keir Starmer, the deal includes a new cooperation pact on defense and security, the removal of product inspection checks, and a 12-year extension granting European fishing vessels access to British territorial waters. This agreement aims to support economic growth and help rebuild relationships with European leaders.

Earlier last year, analysts at Goldman Sachs estimated that Brexit had cost the UK economy between 4% and 8% of its GDP, quite a significant figure. However, they noted that it was difficult to isolate the impact of Brexit from other events such as the COVID-19 pandemic and the 2022 energy crisis.