"A trade continuity agreement will see British businesses and consumers benefitting from continued trade with Israel after we leave the European Union… The agreement simplifies trade and allows businesses to trade as freely as they do now, without any additional barriers or tariffs," the statement said.
The agreement was signed in Jerusalem on Monday by UK Secretary of State for International Trade Liam Fox and Israeli Minister of Economy and Industry Eli Cohen.
The United Kingdom is set to leave the European Union in late March. The two sides have reached a withdrawal deal. However, it has not yet been approved by UK lawmakers, prompting fears of a no-deal Brexit both in Brussels and in London.