Abstract:

The main focus of the paper is to analyze the effect of Brexit on the UK-EU trade and discuss the benefits and costs of the available options. In our analysis, we focused on reviewing existing and available data on Brexit's impact on UK and EU trade policy on the aspect of assessing the benefits and disadvantages that will arise  for the entities concerned. According to available data, none of the future alternatives are as profitable for the UK as the EU membership and Brexit will cause a decline in the UK’s GDP, living standards and average households’ income. It cannot be predicted whether the UK will be able to strike new attractive trade deals with the rest of the world. However, due to its small bargaining power and market size compared to the EU, it is not probable it will.