The deal, which was agreed in principle in June, is the first free trade deal that Britain negotiated from scratch since its EU exit earlier this year to have been signed.

Britain’s department for international trade said the deal which will eliminate tariffs on all exports between the two nations will help create new opportunities for businesses in both countries.

“Our UK-Australia trade deal is a landmark moment in the historic and vital relationship between our two commonwealth nations,” international trade secretary Anne-Marie Trevelyan was quoted as saying in a statement.

The deal is also a boost for Britain’s strong service sector as it eases access to Australian work visas for professionals like lawyers and accountants to an unprecedented extent.

“It is a deal tailored for the UK economy with cutting-edge agreements in areas where Britain is a world leader, including in digital and tech, along with increased access to Australia for the UK’s powerhouse service sectors,” said the department.

Young Britons can also work and travel in Australia for up to three years at a time.

The department also described the deal as “a gateway into the fast-growing Indo-Pacific region and will boost our bid to join CPTPP, one of the largest free trade areas in the world”.

Before becoming prime minister, Boris Johnson had touted Brexit as allowing the construction of a “Global Britain” that would become a trading powerhouse thanks to better trade deals than when it was in the EU.

The free trade deal, which states that “£10.4 billion of additional trade” will be unlocked, will be submitted to lawmakers for review.