EconPapers    
Economics at your fingertips  
 

Quantifying Non-Tariff Barriers: Brexit, Input Sourcing and Firm Performance

Gustaf Dillner, Rebecca Freeman, Kalina Manova and Thomas Sampson

No 21997, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: How successful is European integration in removing non-tariff trade barriers? We study how Brexit affected UK firms' input sourcing and sales. The post-Brexit Trade and Cooperation Agreement (TCA) reduced sales and input expenditure at firms with higher pre-Brexit EU trade exposure. It also caused firms to switch towards domestic and non-EU inputs. Through the lens of a trade model, the switch in input sourcing implies the TCA increased trade costs on EU imports by 21% and raised unit production costs by 3.1% for the average UK importer. Our results indicate EU membership secures large reductions in trade costs.

Keywords: Trade policy; Non-tariff barriers; Brexit (search for similar items in EconPapers)
JEL-codes: F13 F14 (search for similar items in EconPapers)
Date: 2026-09
References: Add references at CitEc
Citations:

Downloads: (external link)
https://cepr.org/publications/DP21997 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:21997

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP21997

Access Statistics for this paper

More papers in CEPR Discussion Papers from Centre for Economic Policy Research 33 Great Sutton Street, London EC1V 0DX, UK.
Bibliographic data for series maintained by CEPR ().

 
Page updated 2026-10-20
Handle: RePEc:cpr:ceprdp:21997