The UK will keep the EU’s customs union and will also be able to trade with the bloc in goods and services as a result, the government has said.
Prime Minister David Cameron said the deal would give the UK a “strong and stable trading relationship with the European Union”.
The agreement will also allow the UK to “trade more directly with Europe, and in some cases to move closer to the single market and customs union” once the UK leaves the bloc.
The deal is a huge victory for Mr Cameron, who has fought for months to have the UK remain in the EU.
In an interview with the BBC, Mr Cameron said he was delighted that the deal was being agreed by the British people.
“We can now get to work,” he said.
“We are in the final stages of negotiations, and I think the people of Britain have got a mandate to take this deal to the next stage.”
It is a major step towards creating a stronger and more stable relationship with our European partners, and it will strengthen the UK’s international position.
“The prime minister said the agreement would also help the UK in its negotiations with the EU over the future of the Single Market and the Customs Union.
Mr Cameron has repeatedly promised that his government will seek to renegotiate the deal and renegotiate its terms once the EU is no longer part of the UK.
He said: “It will help us get to the point where we can get a deal that’s acceptable to both sides of the Atlantic, and is in the best interests of our economy, of the whole of the European community, of our citizens.”
The deal has been hailed as a major victory for trade negotiators and for the country that is one of the biggest single markets in the world.
European officials have praised the UK deal as a significant win for trade.
They said it would give an “important boost” to Britain’s trade with Europe.
But they also warned that a final agreement would take time, and warned that the agreement had to be agreed in the public interest.
David Lidington, the European Commissioner for the Single Trade Agreement, said the EU was delighted by the UK decision.”
The EU-UK deal will create a stronger, more stable and more mutually beneficial trade relationship, which will lead to a better quality of life for British people and businesses, and help create jobs across the European region,” he told the BBC.
However, he warned that any deal that did not reflect the UK public interest was unlikely to be successful.”
A final agreement is only possible when all sides recognise that the benefits of a strong and stable relationship are worth pursuing and achieving,” Mr Lidingtons said.
The government is also facing a backlash from British voters who are opposed to Brexit and are demanding that the UK stays in the single EU market.
The Tories are expected to announce their Brexit plans this week, including a pledge to hold an in-out referendum on EU membership before the end of March.