Updated

Britain and Argentina have agreed to lift restrictions affecting the Falkland Islands, in a thawing of relations between the former wartime enemies.

The two countries released a statement after meetings in Buenos Aires between U.K. 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 Wednesday it was "the first positive statement on South Atlantic issues since 1999."

Argentina lost a 1982 war with Britain after Argentine troops seized the South Atlantic archipelago, which Britain has held since 1833.