Table 2.

Trade costs for each trade policy scenario

The UK’s trade relationship with
The EU-27Main developed non-EU partnersaOther non-EU partners
(S1) Quasi status quoTariffs = 0 |$NT{M_{ij}}$|⁠: MFN regimeTariffs: unchanged |$NT{M_{ij}}$|⁠: unchanged
(S2) Fortress UKMFN tariffs |$NT{M_{ij}}$|⁠: MFN regimeTariffs: unchanged |$NT{M_{ij}}$|⁠: unchanged
(S3) Liberalised trade with EU and main third partnersTariffs = 0 |$NT{M_{ij}}$|⁠: MFN regime½ tariffs ½ |$ NT{M_{ij}}$|Tariffs: unchanged. |$NT{M_{ij}}$|⁠: MFN regime
(S4) Liberalised trade with main third partners onlyMFN tariffs |$NT{M_{ij}}$|⁠: MFN regime½ tariffs ½ |$ NT{M_{ij}}$|Tariffs: unchanged. |$NT{M_{ij}}$|⁠: MFN regime
(S5) Actual trade policyTariffs = 0 |$NT{M_{ij}}$|⁠: MFN regimePTAs|$i \leftrightarrow UK$|⁠: preferential tariffs unchanged |$NT{M_{ij}}$|
Rest of |$i \to UK$|⁠: UKGT unchanged |$NT{M_{ij}}$|
|$UK \to {\rm{Rest\ of\ }}j$|⁠: MFN tariffs, unchanged |$NT{M_{ij}}$|
The UK’s trade relationship with
The EU-27Main developed non-EU partnersaOther non-EU partners
(S1) Quasi status quoTariffs = 0 |$NT{M_{ij}}$|⁠: MFN regimeTariffs: unchanged |$NT{M_{ij}}$|⁠: unchanged
(S2) Fortress UKMFN tariffs |$NT{M_{ij}}$|⁠: MFN regimeTariffs: unchanged |$NT{M_{ij}}$|⁠: unchanged
(S3) Liberalised trade with EU and main third partnersTariffs = 0 |$NT{M_{ij}}$|⁠: MFN regime½ tariffs ½ |$ NT{M_{ij}}$|Tariffs: unchanged. |$NT{M_{ij}}$|⁠: MFN regime
(S4) Liberalised trade with main third partners onlyMFN tariffs |$NT{M_{ij}}$|⁠: MFN regime½ tariffs ½ |$ NT{M_{ij}}$|Tariffs: unchanged. |$NT{M_{ij}}$|⁠: MFN regime
(S5) Actual trade policyTariffs = 0 |$NT{M_{ij}}$|⁠: MFN regimePTAs|$i \leftrightarrow UK$|⁠: preferential tariffs unchanged |$NT{M_{ij}}$|
Rest of |$i \to UK$|⁠: UKGT unchanged |$NT{M_{ij}}$|
|$UK \to {\rm{Rest\ of\ }}j$|⁠: MFN tariffs, unchanged |$NT{M_{ij}}$|
a

USA, Australia, New Zealand, Switzerland, Chile and Israel.

Table 2.

Trade costs for each trade policy scenario

The UK’s trade relationship with
The EU-27Main developed non-EU partnersaOther non-EU partners
(S1) Quasi status quoTariffs = 0 |$NT{M_{ij}}$|⁠: MFN regimeTariffs: unchanged |$NT{M_{ij}}$|⁠: unchanged
(S2) Fortress UKMFN tariffs |$NT{M_{ij}}$|⁠: MFN regimeTariffs: unchanged |$NT{M_{ij}}$|⁠: unchanged
(S3) Liberalised trade with EU and main third partnersTariffs = 0 |$NT{M_{ij}}$|⁠: MFN regime½ tariffs ½ |$ NT{M_{ij}}$|Tariffs: unchanged. |$NT{M_{ij}}$|⁠: MFN regime
(S4) Liberalised trade with main third partners onlyMFN tariffs |$NT{M_{ij}}$|⁠: MFN regime½ tariffs ½ |$ NT{M_{ij}}$|Tariffs: unchanged. |$NT{M_{ij}}$|⁠: MFN regime
(S5) Actual trade policyTariffs = 0 |$NT{M_{ij}}$|⁠: MFN regimePTAs|$i \leftrightarrow UK$|⁠: preferential tariffs unchanged |$NT{M_{ij}}$|
Rest of |$i \to UK$|⁠: UKGT unchanged |$NT{M_{ij}}$|
|$UK \to {\rm{Rest\ of\ }}j$|⁠: MFN tariffs, unchanged |$NT{M_{ij}}$|
The UK’s trade relationship with
The EU-27Main developed non-EU partnersaOther non-EU partners
(S1) Quasi status quoTariffs = 0 |$NT{M_{ij}}$|⁠: MFN regimeTariffs: unchanged |$NT{M_{ij}}$|⁠: unchanged
(S2) Fortress UKMFN tariffs |$NT{M_{ij}}$|⁠: MFN regimeTariffs: unchanged |$NT{M_{ij}}$|⁠: unchanged
(S3) Liberalised trade with EU and main third partnersTariffs = 0 |$NT{M_{ij}}$|⁠: MFN regime½ tariffs ½ |$ NT{M_{ij}}$|Tariffs: unchanged. |$NT{M_{ij}}$|⁠: MFN regime
(S4) Liberalised trade with main third partners onlyMFN tariffs |$NT{M_{ij}}$|⁠: MFN regime½ tariffs ½ |$ NT{M_{ij}}$|Tariffs: unchanged. |$NT{M_{ij}}$|⁠: MFN regime
(S5) Actual trade policyTariffs = 0 |$NT{M_{ij}}$|⁠: MFN regimePTAs|$i \leftrightarrow UK$|⁠: preferential tariffs unchanged |$NT{M_{ij}}$|
Rest of |$i \to UK$|⁠: UKGT unchanged |$NT{M_{ij}}$|
|$UK \to {\rm{Rest\ of\ }}j$|⁠: MFN tariffs, unchanged |$NT{M_{ij}}$|
a

USA, Australia, New Zealand, Switzerland, Chile and Israel.

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