Innovation and Global Issues V, Ankara, Turkey, 2 - 04 May 2019, pp.140-151
After the Brexit negotiations between the United Kingdom and the European Union are
completed, the United Kingdom has various trade options to choose, with the European Union.
In this study, we consider three most possible trade options one of which is Norway option, the
other one is Swiss option and the final one is World Trade Organization option. Considering
these three trade options, we use the computable general equilibrium model to predict the
effects of increasing tariff rates on the United Kingdom’s gross domestic product and its
components. Our results suggest that among these options, Norway option offers the least
negative impact or the best economic outcome while World Trade Organization option offers
the most negative impact or the worst economic outcome.