IMPACT OF BREXIT ON UK-EU TRADE RELATIONSHIP

This research analyses the different scenarios for the trade relationship between the UK and the EU after Brexit. It analyses three possible models and covers ten years after Brexit. The first one, using the comparative methodology, examines the possibility and consequences of reaching a deal under existing arrangements that the EU has with non-EU countries. The second model will be presented in case of „no-deal” and trade relations under WTO rules. The third model will be analyzed by the computable general equilibrium (CGE) model. All these models suggest that Brexit will change the future trade relationship between UK and EU economy, and consequently will have a significant impact on the UK economy. This is because researches in this context suggest that the EU will impose several restrictions on the British economy after Brexit, which will ultimately have a significant negative impact on its trade within the European market.