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    Union flags displayed on a tourist stall, backdropped by the Houses of Parliament and Elizabeth Tower containing the bell know as Big Ben, in London, Wednesday, February 8, 2017.

    No Post-Brexit Free Trade Deal With EU to Hurt UK Non-Financial Services Exports

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    A scenario where the United Kingdom quits the European Union without a comprehensive free trade pact would be damaging for the UK’s non-financial services, a report by a parliamentary committee said Wednesday.

    MOSCOW (Sputnik) — Prime Minister Theresa May gave a harsh speech on Brexit priorities in February, claiming that "no deal is better than a bad deal." She also ruled out plans to remain inside EU’s single market at all costs.

    "Losing access to the Single Market… or failure to secure a FTA at all (a ‘no deal’ scenario), would risk significant damage to the UK’s services sectors," the UK’s EU internal market subcommittee wrote.

    The study estimated that UK’s total volume of exports in non-financial services to the European Union was $32.4 billion, twice that of exports in financial services. In 2015, UK’s trade with the union in professional business services, digital and creative services generated a surplus of $12 billion for the UK’s trade balance.

    In the absence of a UK-EU free trade deal, the United Kingdom will have to fall back on trade under more rigid World Trade Organization (WTO) rules, the report concluded. This scenario may also force UK-based businesses to relocate their operations to the union.

    "To protect the UK’s status as a global leader of trade in services, the Government will need to secure the most comprehensive FTA that has ever been agreed with the EU … This will be a lengthy and complex process, but not impossible," the committee said.

    The House of Lords committee reiterated its warning that London needed to secure a transitional trading arrangement with the European Union in case their talks on Brexit terms took longer than two years, in order to prevent a regulatory cliff-edge.

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