The new deal will replace an existing EU arrangement, which will allow UK-US travel to continue once the UK’s EU transition period expires at the end of the year.
Shapps said the agreement would preserve travel arrangements between the two countries, reinforce the UK’s trading relationship with the US, and ensure the UK continues to serve as an aviation hub for transatlantic leisure and business travellers.
According to the UK government, UK-US transatlantic air routes contribute to a trading relationship worth more than £230 billion.
"The Air Services Agreement will allow us to continue to travel and trade with one of our closest friends and allies, working together to mutually boost our economies, either side of the Atlantic," said Shapps.
The agreement will come into effect upon completion of various procedural formalities.
