The Potential Effects of Brexit on the International Trade of the United Kingdom

Abstract

The process of the United Kingdom (UK) leaving the European Union, as a result of the 2016 referendum, brings a lot of uncertainties regarding the impacts of new regulations of trade relations between the UK and other EU member states as well as other countries worldwide. The purpose of this research is, based on a review of the UK's history as an EU member, and the analyses of its current international trade, to determine the potential effects of the process of the UK leaving the European Union to its future trade with the rest of the world. In this paper, four different models by which further trade relations between the United Kingdom and EU could be regulated are discussed. Each of these models has its advantages and disadvantages, and it is not possible to determine with certainty which one of them would be the most beneficial for the UK. Even though a large number of UK's trade partners are not EU members, it is evident that the trade with other countries worldwide can easily be a subjected to change. For that reason, the United Kingdom should primarily base its trade on relations with EU member states, with the assumption of further cooperation with other counties.