Macroeconomics: UK economy, IB Economics

This BBC article looks at the implications of the failure of the UK and Canada to agree a trade deal for three of the main sectors of industry: cheese, beef and cars. Beyond the minutae of the sectors though - have a quick look at the overall impact of the putative trade deal - trade between the UK and Canada only accounts for 1.4% of total trade, so even if the deal is concluded it isn't going to have a major impact upon the UK economy. 

It seems that the first major trade deal between the UK and one of its trading partners is on the point of being concluded. However, before you get too carried away, just how much trade does the UK actually do with Canada? 

It accounts for 1.5% of our exports, and 2.3% of our imports. A massive moment, then. 

Good luck with this, Prime Miinster. 

Just remember that the word "compromise" means a solution that satisfies nobody. 

One for the costs of Brexit file, with the news that UK-Canada trade negotiations have faltered over the issue of the UK permitting the import of hormone treated beef and the demands of Canadian cheesemakers.

As a result, having previously been trading with Canada on the same terms as the EU, we're now trading on worse terms, with car manufacturers and UK cheesemakers now facing tariffs on their exports. 

You really couldn't script it. Apart from the bits that you self-evidently could. 

Great headline - I suspect that most members of the Cabinet only have the loosest idea of what a Canada-style deal involves, but the Comprehensive Economic and Trade Agreement (CETA) means that around 98% of trade in goods between Canada and the EU is duty free. However, it also admits of common standards and mutual recognition of professional qualification. 

That, apparently, is the straw that we're now clutching at.