Piet Eeckhout and Clément Leroy examine various models for the UK-EU trade relationship after Brexit, and argue that a so-called bespoke agreement beyond existing frameworks is not available. This blog draws on Piet Eeckhout’s report Future trade relations between the EU and the UK: options after Brexit, which he is presenting to the European Parliament’s International Trade Committee on Thursday 17 May (watch here).
The future trade relationship between the UK and the EU will affect a wide range of economic and social policies. Looking beyond what would be desirable from an economic viewpoint, one can examine the different models for this relationship that are under consideration in the context of the Brexit negotiations against the canvas of two distinct paradigms: market integration and trade liberalisation. Continue reading