Sir Keir Starmer has confirmed a new agreement with the European Union that will be "good for jobs, good for bills and good for our borders".
Negotiations have been ongoing for the last six months, which has led to the third deal under Labour, following the US and India trade deals.
Starmer said that this EU agreement will "improve people's lives here at home".
Details of the deal include a new SPS agreement, which will make it easier for food and drink to be imported and exported.
Keir Starmer was seen smiling with the President of the EU Commission, Ursula von der Leyen
Reuters
The agreement will reduce the red tape that has burdened businesses and led to lengthy lorry queues at the border.
Some routine checks on animal and plant products will be removed, allowing goods to flow more freely through the UK.
This could lower food prices with the greater variety of options in supermarkets.
Following Brexit, exports dropped 21 per cent, and imports from the EU declined seven per cent. Starmer hopes that with his "practical solutions," he can "get the best for the British people".
The Prime Minister said: "This deal is all about facing out into the world once again, in the great tradition of this nation.
"Building the relationships we choose, with the partners we choose, and closing deals in the national interest. Because that is what independent, sovereign nations do."
Minister for EU Relations and lead Government negotiator, Nick Thomas-Symonds, added: "Today is a historic day, marking the opening of a new chapter in our relationship with the EU that delivers for working people across the UK.
"Since the start of these negotiations, we have worked for a deal to make the British people safer, more secure and more prosperous.
Nick Thomas-Symonds said it is a 'historic day' for the UK
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"Our new UK-EU Strategic Partnership achieves all three objectives. It delivers on jobs, bills and borders.
"Today is a day of delivery. Britain is back on the world stage with a Government in the service of working people."
Details on the deal will continue as the UK and the EU hold further talks on each commitment.
Despite the Prime Minister's commitment to stop small boat crossings, there are no details in the deal to tackle illegal immigration.