Asked by: Stewart Hosie (Scottish National Party - Dundee East)
Question to the Department for Exiting the European Union :
To ask the Secretary of State for Exiting the European Union, whether professional services companies will continue to have a legal basis for trading with (a) third countries and (b) trading blocs that the EU currently has services agreements with excluding potential (i) tariff changes and (ii) non-tariff barriers in the event that the UK leaves the EU (A) with and (B) without a deal.
Answered by Chris Heaton-Harris
The Government is committed to working with third countries to provide continuity across our existing trade agreements to deliver certainty for businesses in all scenarios, including professional services companies. Some of these agreements contain services chapters. We will inform Parliament and the public when agreements have been signed and will post details of completed agreements on gov.uk.
The EU has agreed to notify third countries that, during the implementation period, the UK is to be treated as an EU member state for the purposes of international agreements, including trade agreements. This provides a basis for continuity during this period.
Should arrangements to maintain particular preferences in a no deal scenario not be in place on exit day, trade would then take place on a ‘Most-Favoured Nation’ (MFN) basis, which is sometimes referred to as ‘World Trade Organization (WTO) Terms’, until a new arrangement has been implemented.
For services, the MFN principle means WTO members are required to grant treatment to UK services and service suppliers, which is no less favourable than to services and service suppliers of any other WTO member