The purpose of this paper is twofold. First, we present a new model of agglomeration and trade that displays the main …

on the effects of trade on welfare net of lower fiscal transfers to the EU. We use a standard quantitative static general … equilibrium trade model with multiple sectors, countries and intermediates, as in Costinot and Rodriguez-Clare (2013). Static …

reduced trade with EU countries. We consider an optimistic scenario with relatively small increases in trade barriers between … would impose additional costs on the UK and following Brexit the UK would not benefit from future EU free trade agreements … such as the Transatlantic Trade and Investment Partnership currently being negotiated with the United States. …