The government has announced that a post-Brexit trade deal has been signed between the United Kingdom and Ben and Holly’s Little Kingdom.

According to government sources, it is the first agreement that has been put in place after the International Secretary for Trade Liam Fox circumnavigated the globe eight times in search of future possibilities for British interests.

Speaking at a hastily arranged press conference at King Thistle’s Castle and Conferencing Suite, Fox said that the 50-year arrangement will ensure that the United Kingdom can continue importing toys, diamonds and gold to support the kingdom’s gnome mining industry while allowing Mr Elf to benefit from wholesale rates on groceries.

He added: ‘Defence will also benefit from this new arrangement as Big Bad Barry will patrol our nation’s coastline.’

‘We studied the terms of our existing EU membership very carefully, and although it stipulates that we are not allowed to discuss trade terms until our exit deal has been thoroughly negotiated, we have the right to enter negotiations with entirely fictitious countries.’

‘On that note, after today’s press conference I will be continuing my tour by visiting Button Moon, The Night Garden and Wales.’

The Little Kingdom’s trade delegate Wise Old Elf was also ‘optimistic’ about future relations with the United Kingdom.

He said: ‘I had no unreasonable demands for Mr Fox whatsoever, as long as there is no magic in the final deal.’

‘After consulting with Senior Minster Plum about refraining from using magic to prop up the British economy after Brexit as part of the deal, she said ‘I’m a fairy with years of spellbinding experience in jelly floods, not a fucking miracle worker.’