Economics of Brexit

The IEA’s Plan A+ for ‘free trade’ is the product of fanaticism

The Institute of Economic Affairs has produced a document setting out a post-Brexit ‘free trade’ plan which would abandon ‘regulatory barriers’ that, it says, hold back British exports and stymie imports. Sean Swan (Gonzaga University) argues that it would have dangerous consequences for the NHS, manufacturing and food hygiene, and is not what British patients and consumers want.

The hard […]

  • Permalink Gallery

    Lessons from South Korea: What would a hard Brexit mean for British manufacturers?

Lessons from South Korea: What would a hard Brexit mean for British manufacturers?

The UK government has proposed maintaining a ‘common rulebook’ with the European Union following Brexit, which would in principle prevent non-tariff trade barriers from developing. But if this proposal fails and the UK leaves without a deal, how would British manufacturers be affected? Robert Basedow draws lessons from the South Korean car industry, noting that manufacturers based outside of […]

What if Britain rejoined the EU? Breaking up may be less hard than making up

If Britain ever sought to rejoin the EU, it could not be on the terms of membership we previously enjoyed, warns Iain Begg (LSE). The UK’s budget rebate, exemption from Schengen and opt-outs from the euro and judicial cooperation will not be on the table again. This would make rejoining a difficult sell to the British public.

A curiosity of […]

  • Permalink CC0 Public DomainGallery

    UK households are already suffering the consequences of the vote. The worst may be yet to come

UK households are already suffering the consequences of the vote. The worst may be yet to come

UK households are already suffering the consequences of the vote (close to one week’s wages), and macroeconomic indicators are not looking good. It has become harder to look on the bright side of Brexit, writes Elsa Leromain (LSE). To minimise the economic costs of Brexit the UK should remain in the Single Market and the Customs Union, she argues. 

An informal but important meeting […]

State aid and Brexit: the temptation for political intervention

State aid is currently regulated by the EU and, after Brexit, the government intends to transpose the rules into UK legislation, with the Competitions and Markets Authority overseeing the issue. Totis Kotsonis (Eversheds Sutherland) explains why future governments could be tempted to allow political intervention that EU membership precludes. 
The UK government has recently indicated its intention to transpose the EU state […]

  • Permalink Gallery

    Chequers is deeply flawed: a no deal Brexit is far preferable

Chequers is deeply flawed: a no deal Brexit is far preferable

The Chequers deal is deeply flawed on both economic as well as political grounds – a “no deal” Brexit would be a far preferable solution, argues Ruth Lea. In her opinion, a Chequers-style deal would be economically sub-optimal, tying the UK to the EU’s rulebook, but without any influence. On the contrary, in the event of a “no deal” Brexit, trading under […]

  • Permalink Gallery

    WTO option in practice: how a no-deal Brexit would seriously damage key UK industries

WTO option in practice: how a no-deal Brexit would seriously damage key UK industries

A no-deal Brexit would mean falling back on WTO law when it comes to trading in goods and services with the EU. This would result in serious economic damage for key industries in the UK, write Kahraman Altun and Johannes Müller. In this post, they explain what a no-deal Brexit and reverting to trade under WTO law would entail in practice.

Whilst a no-deal Brexit […]

Continental Breakfast 11: fragile politics and trading relationships

Business Europe hosted a panel of LSE experts for a joint seminar with business representatives in Brussels on 25 June 2018 to discuss the current state of Brexit negotiations. Professors Kevin Featherstone and Tony Travers talked about the political situation in the UK, and Professor Paola Conconi and Jan Kleinheisterkamp went on to discuss potential new UK-EU trade relationships. Elsa Leromain (CEP, LSE) […]

Greener or leaner? Planning policy after Brexit

Is Brexit a chance to free UK planners from onerous environmental standards, or to set new, clearer environmental goals? While planning is not a core EU competence, membership has helped shape it. Richard Cowell (University of Cardiff, left), Olivier Sykes and Thomas Fischer (University of Liverpool), Geraint Ellis (Queen’s University Belfast), Anthony Jackson (University of Dundee) and Thomas Muinzer (University of Stirling) look at the possibilities ahead.
As the uncertainty surrounding the […]

  • Permalink Gallery

    Long read: Can Brexit defy gravity? It is still much cheaper to trade with neighbouring countries

Long read: Can Brexit defy gravity? It is still much cheaper to trade with neighbouring countries

Is the UK locked into economic relationships dominated by geography? Can it reorient its trade and FDI patterns from the slower growing European economy to faster-growing markets in Asia, Latin America and Africa, as promised by the proponents of Brexit? In this article Saul Estrin, Christine Cote (LSE), and Daniel Shapiro (Simon Fraser University) concentrate their attention on trade in goods […]