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The double irony of the new UK-EU trade relationship | VOX, CEPR Policy Portal

On 1 January 2021, the United Kingdom left both the European Customs Union and the Single Market. Its trade relationship with the European Union is now governed by a Trade and Cooperation Agreement (TCA), which establishes a free-trade area in goods and services broadly comparable to recent trade deals between the EU and major, advanced non-European countries such as Canada and Japan. To appreciate fully the significance of this new chapter in the EU-UK trade relationship – and the ironies it brings with it – it is useful to examine how that relationship has evolved over the past 60-plus years. The UK is now outside structures it helped create and that, indeed, were fundamental to UK efforts over six decades to avoid being economically disadvantaged in Europe. It should be noted that what follows focuses solely on trade, which is the core of the TCA. This article does not delve into areas such as monetary integration or the EU budget, which were important when the UK belonged to

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