The two countries released a statement after meetings in Buenos Aires between UK Foreign Office Minister Alan Duncan and senior Argentine officials, including President Mauricio Macri and Foreign Minister Susana Malcorra.
They agreed to "remove all obstacles limiting the economic growth and sustainable development" of the islands, including restrictions on trade, fishing, shipping and the oil industry.
And they agreed to increase the number of flights between the Falklands and Argentina.
Britain said today it was "the first positive statement on South Atlantic issues since 1999."
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