The UK and Israel confirmed a post-Brexit free trade deal Wednesday with International Trade Secretary Liam Fox saying the two countries have shaken hands on a future agreement.

“As Britain prepares to leave the European Union and to ensure continuity for our businesses in both directions, we’ve reached agreement in principle today with our colleagues in Israel,” Mr. Fox said at the World Economic Forum in Davos.

Applauding Israel as “one of the most cooperative and productive partners” of the UK, Mr. Fox added: “The continuity as we leave the European Union will be a precursor to an even more ambitious agreement in the future.”

Israel’s minister of the economy, Eli Cohen, confirmed the countries broke the $10bn barrier last year and looks forward to building on that strong base.

“I am sure that this free trade agreement will help us to accelerate and increase even more and strengthen our economic relationship.”

The Israel/UK pact follows a new bilateral Wine Agreement and Mutual Recognition Agreement that was signed in London on Saturday designed to help ease the continued flow of post-Brexit trade between Australia and the UK.

Last year Australia indicated it wanted to begin negotiating a new trade deal with the UK on “day one” of Brexit and put it into effect on January 1, 2021.

Australia’s then Trade Minister Steve Ciobo gave that assurance during a speech delivered in London as he called for Britain to start formal trade talks with Australia on March 30 — the same day Brexit officially starts.

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