A cross-party House of Lords report suggests that reverting to the World Trade Organisation Terms would risk “significant damage” to some of Britain’s most important exports, such as legal services and creative industry products. Britain’s service based industry risks being barred from other European markets if the Prime Minister, Theresa May, decides to walk away from the upcoming Brexit negotiations without a deal in place. The report concluded that while the EU services single market is not without fault, it provides a highly integrated system for businesses to operate in. Lord Whitty, a Labour peer and chairman of the EU internal market sub-committee, said any deal to keep this level of integration would go beyond the EU’s groundbreaking recent agreement with Canada, called Ceta – “It would be the biggest, most comprehensive free-trade agreement ever attempted: more complex than Ceta, more complex than TTIP was going to be and neither of those had the extent of coverage of services that we would need here, it’s not impossible to see some of these things being resolved but the complexity of it needs to be faced up to, which brings us back to the conclusion we made in an earlier report: only having two years for the divorce talks is unlikely to be sufficient.”
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