This podcast episode analyses intra-industry trade (IIT) between the UK and US in the footwear sector. With an IIT index of 0.7058, most of the trade involves differentiated products, suggesting a market driven by consumer preferences and economies of scale rather than basic cost advantages. The discussion draws on modern trade theories like those of Krugman and the Linder hypothesis, showing how high IIT supports specialisation in similar but distinct products. Post-Brexit, the UK needs to focus on regulatory alignment and tariff reductions, especially in sectors like footwear where IIT is high. A successful UK-US free trade agreement hinges on addressing non-tariff barriers and encouraging innovation.

Brief debate on regionalism and multilateralism