The European Union and Israel have agreed in principle to further open up their food markets to one another's products, officials in Brussels announced Friday.

Around 95 per cent of the trade in processed agricultural products between the EU and Israel is already fully liberalized.

The new agreement raises quotas and lowers tariffs on a range of 'sensitive' products such as citrus fruits, goose liver and soya oil, a statement from the European Commission said.

The Brussels-based EU executive described the deal as 'balanced' and 'beneficial to both sides.' 

It still has to be formally approved by both sides.