UK’s Post-Brexit Economic Prospects in View of its Trade and Cooperation Agreement (TCA) with the EU

Abstract

The socio-economic incentives of the EU membership approach with certain political responsibilities. Following a Eurosceptic approach, the UK had often been seeking a reduction in the obligations on its part as an EU member. Eventually, it decided to leave the membership in an attempt to ‘take back control’ of laws and borders. The economic cost of the Brexit for the UK has been widely debated since the country’s referendum on the EU membership. Studies conducted in the midst of Brexit process mostly lacked a single-scenario analysis because the precarious Brexit talks made any estimation about the nature of UK-EU future relationship difficult. With the realization of both Brexit and the post-Brexit cooperation agreement between the parties, the phenomenon becomes much more lucid and demands a more focused and coherent analysis. The article examines UK’s economic implications after Brexit in the light of Trade and Cooperation Agreement (TCA) that establishes a redefined economic partnership between the UK and the EU. It is argued that the Brexit will adversely affect the UK’s economic performance in the medium to long term as the country loses unrestricted and comprehensive access to the EU market and does not have easy alternatives.