Abstract This paper examines the implications of the EU–UK Trade and Cooperation Agreement (TCA) using a dynamic spatial general equilibrium model. Unlike previous studies that primarily projected potential impacts of Brexit based on uncertain scenarios, this analysis introduces new estimates of tariffs and non‐tariff measures specified by the TCA. The findings show that while the TCA will necessitate substantial adjustments for some sectors, Brexit will not fundamentally alter the overall structure of the UK economy. However, the main impacts will manifest as significant hits to real wages and productivity, exacerbating the long‐standing economic challenges faced by the UK.
Jia et al. (Wed,) studied this question.