The agreement was signed earlier in the day in the Swiss city of Bern by UK Secretary of State for International Trade Liam Fox and Swiss Federal Councillor Guy Parmelin.
"The agreement simplifies trade and allows businesses to continue trading freely, without any additional tariffs. It continues the elimination of duties on the vast majority of goods traded between the UK and Switzerland. Trading on these preferential terms rather than on World Trade Organization terms will deliver significant savings and help to safeguard British jobs", the statement read.
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.
The British media outlets have reported that UK Secretary of State for International Trade Liam Fox was considering cutting the tariffs on imports in case of a no-deal Brexit in order to keep prices low for consumers. If the United Kingdom left without a deal, its trade relations with the European Union would be governed by the World Trade Organization rules. The United Kingdom would not be able to slash tariffs on EU imports only and would have to introduce zero tariffs for all its other trade partners.