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International Monetary Fund. European Dept.

accounted for. These are likely losses that should be interpreted with caution, given the important uncertainty characterizing the empirical estimations. Moreover, there is substantial heterogeneity in the impact of higher trade barriers: countries such as Ireland, Netherlands, and Belgium are among the most affected in the simulations . A. Euro Area and U.K.: How Strong are the Links? Dimensions of Integration 1. EU-U.K. trade integration has benefited both parties . For example, the euro area (EA) runs a modest trade surplus with the U.K., while the U.K. has a