Prime Minister Boris Johnson is said to have finally agreed a major free trade deal (Image: SKY)

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Boris Johnson has agreed a free trade deal with Australia in the first major post-Brexit trading agreement, according to reports.

The Prime Minister and his Australian counterpoint Scott Morrison agreed the deal over dinner in No 10 on Monday evening, Sky News says, with the details set to be officially announced on Tuesday.

The UK government had been keen to strike a free trade deal with Australia by the end of June as it would prove it was capable of forging new economic opportunities post-Brexit.

The deal aims to increase the volume of trade between the UK and Australia above the current £20billion.

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Boris Johnson with Australian Prime Minister Scott Morrison
(Image: AFP via Getty Images)

This will be the first major post-Brexit free trade agreement with a nation that the UK did not have an existing deal with while in the EU.

The deal is also of great importance at it could be a benchmark for terms set with future negotiations with other countries including the US.

Last month it was speculated that there were differences among ministers over the terms of the deal.

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  • Farmers warn Australia trade deal could see UK flooded with cheap and inferior food

Some are thought to have raised concerns that an agreement without a tariff and quota could leave farmers struggling to compete.

The Department for International Trade insisted repeatedly that any trade deals would not "undercut UK farmers or compromise our high standards".

But last month, farming groups warned that a proposed free trade deal with Australia could endanger livelihoods in the UK.

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  • Brit farmers warn Australia trade deal could see them go bust and ruin countryside

The groups said they were concerned that UK farmers would be unable to compete with imports from Australia.

They feared the larger farms, and what some claim are lower welfare standards, would result in cheaper and inferior produce.

Concerns include the fact that around 70% of hens in Australia are in battery cages (banned in UK and EU since 2012), crammed into space no bigger than an A4 piece of paper.

Sow stalls were banned in UK in 1999 but in Australia pigs can be kept in stalls for up to six weeks during pregnancy, unable to turn around or move.

In addition Australian farmers use 16 times more antibiotics on poultry than UK, and almost three times as much on pigs.

Downing Street said at the time that Mr Johnson wanted to “maximise” the benefits of trade deals.