Geopolitical Rivalries Are Transforming the Contours of Trade

Following Brexit, exporters in the UK experienced significant changes to their ability to trade with European Union member states. The UK Trade Policy Observatory estimates that UK exports to the EU decreased by 14% after the UK-EU Trade and Cooperation Agreement went into effect on Jan. 1, 2021. Certain sectors — like the UK fashion industry — were particularly hard hit by the reintroduction of tariffs, cross-border regulations and other customs formalities.