Implications of Brexit for developing countries' agri-food trade

Technical Report (PDF Available) · March 2018with 325 Reads
Report number: Trinity Economic Papers 03/2018, Affiliation: Trinity College Dublin
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Abstract
Brexit (the UK's exit from the European Union) will have important repercussions for the agri-food trade of developing countries because of the UK's size (it is the sixth largest economy in the world) and its important role as an importer of agri-food products (it accounts for 12% of the EU's imports from developing countries). These effects will occur through a variety of different channels: the consequences of higher trade costs on UK-EU27 trade; possible changes in future UK tariff and trade policy after Brexit; possible changes in UK and EU27 agricultural policy; impacts on UK agricultural production capacity; and macroeconomic channels such as changes in future UK economic growth and the value of sterling. This paper reviews the potential significance of these changes, and makes recommendations as to how developing countries might respond to these changes. JEL: F13, F63, Q17
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