Sir Keir Starmer called for the UK to have a "closer trading relationship with the EU" as he gave a lukewarm welcome to the Government’s deal to join a major Indo-Pacific trade bloc.
The UK has now formally joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
Sir Keir said it was "good to have a new trade deal, but better to have a closer relationship with the EU to go alongside it" as he argued the economic benefits of the CPTPP pact would be "very small".
Speaking during a visit to Plymouth, the Labour leader said: "I welcome any trade deal, but I have to say we need to bear in mind that the net contribution to our economy will be something in the order of 0.08 per cent.
"What we need alongside that is a closer trading relationship with the EU. Businesses across the country are crying out for a better deal than the one that the Government has put in front of them.
"So, yes, good to have a new trade deal, but better to have a closer relationship with the EU to go alongside it and to help our businesses grow our economy and take us through and out of this cost-of-living crisis."
The CPTPP deal will cut tariffs for UK exporters to a group of 11 countries which – with Britain’s accession – will have a total gross domestic product (GDP) of £11 trillion.