Share

UK's non-financial services at risk after Brexit

London - UK Prime Minister Theresa May should seek a free-trade deal with the European Union (EU) that includes services or risk damaging industries that aren’t covered by World Trade Organisation (WTO) rules, a House of Lords panel found.

Exports of non-financial services amounted to £162bn in 2015, with 39% of them going to the EU. They include accountancy and legal services, telecommunications, broadcasting and aviation.

According to the Internal Market Subcommittee of the upper chamber’s EU Committee, the fear after Brexit for these industries isn’t about tariffs but non-tariff barriers, such as a requirement to have licenses in order to trade.

“The UK is the second largest exporter of services in the world,” Larry Whitty, the chairperson of the subcommittee, said in a statement.

“To protect the UK’s status as a global leader of trade in services, the government will need to secure the most comprehensive free-trade agreement that has ever been agreed with the EU.”

The panel urged the government to prioritize agreeing on a temporary arrangement under which businesses can continue to trade until a permanent deal is reached.

It warned that neither the aviation and broadcasting sectors would be covered by the WTO, meaning that if there were no accord, companies would have to rely on “outdated and restrictive agreements.”

Read Fin24's top stories trending on Twitter:

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.2%
Rand - Pound
23.90
-0.0%
Rand - Euro
20.43
+0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.2%
Platinum
910.50
+1.5%
Palladium
1,016.25
+1.4%
Gold
2,220.89
+1.2%
Silver
24.88
+1.0%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.8%
Resource 10
57,251
+2.8%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders