A hitch-hiker’s guide to post-Brexit trade negotiations: options and principles

Abstract

Brexit will require the UK to negotiate new trade arrangements with the EU. After summarizing the main options for future UK–EU trade relations, this article reviews the purpose of trade agreements. We highlight that trade negotiations are a bargaining game between countries seeking to reap the gains from international coordination while conceding as little as possible to their negotiating partners. This leads us to propose four principles the UK should adopt to guide its trade negotiating strategy: (i) you get what you give; (ii) where negotiations start from matters; (iii) bargain from a position of power; and (iv) invest in negotiating capacity.