London: Britain clinched a Brexit trade deal with the European Union on Thursday, just seven days before it exits one of the world's biggest trading blocs in its most significant global shift since the loss of empire.

British Prime Minister Boris Johnson tweeted a picture of himself inside Downing Street, raising both arms in a thumbs-up gesture of triumph, with the words "The deal is done".

"We have taken back control of our money, borders, laws, trade and our fishing waters," a Downing Street source said.

"The deal is fantastic news for families and businesses in every part of the UK. We have signed the first free trade agreement based on zero tariffs and zero quotas that has ever been achieved with the EU," the source said.

"We have delivered this great deal for the entire United Kingdom in record time, and under extremely challenging conditions, which protects the integrity of our internal market and Northern Ireland’s place within it," the source said.

The deal guarantees Britain is no longer in the lunar pull of the EU and will not be bound by EU rules, the source said.

"There is no role for the European Court of Justice and all of our key red lines about returning sovereignty have been achieved," the source said.

Trade worth 668 billion pounds ($909 billion) in 2019 is covered by the deal, the source said.

While the last-minute deal prevents the most acrimonious ending to the saga on January 1, the United Kingdom is set for a much more distant relationship with its biggest trade partner than almost anyone expected at the time of the 2016 referendum.

Sterling extended gains and rose as high as $1.3620. It was last up 0.7% at $1.3591, with potential to rise to a 2-1/2-year high above $1.3625.

(Reuters)

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