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The U.K. and the European Union struck a trade deal Thursday, setting the terms of their commercial relations after Britain completes its hard-fought split from the EU on Dec. 31.

British lawmakers had haggled for years over the divorce, known as Brexit. Britain formally left the EU on Jan. 31, closing the book on nearly half a century of close ties with Europe, but it continued to follow the bloc’s rules during a transition period intended to give the two sides time to negotiate the trade deal struck this week.

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