"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.
"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.