The U.K. and the European Union have hailed the trade deal announced earlier on Thursday after the two sides at last finalized the economic terms of their separation.

European Commission President Ursula von der Leyen said the deal was "worth fighting for" and that it would protect the interests of the bloc.

"It was worth fighting for this deal. We now have a fair and balanced agreement with the UK," said von der Leyen.

"It will protect our EU interests, ensure fair competition & provide predictability for our fishing communities. Europe is now moving on."

On his part, U.K. Prime Minister Boris Johnson said the deal "is the biggest bilateral trade deal signed by either side."

"Everything that the British public was promised during the 2016 referendum and in the general election last year is delivered by this deal," he said.

"We have got Brexit done and we can now take full advantage of the fantastic opportunities available to us as an independent trading nation, striking trade deals with other partners around the world."

An announcement confirming a deal had been expected on Thursday morning but was delayed by several hours as the final terms of the fisheries part of the agreement were sorted.

The U.K. and the E.U. now have one week to formally ratify the deal in London and Brussels. Failure to do so could see tariffs imposed on goods traded between the pair from January 1.