I understand that in the case of no deal scenario there could be many difficulties to trade with the EU, but what about trade with the rest of the world? How could UK services providers be affected?
One of the consequences is that Brexit would mean that the UK could not benefit from the trade agreements that the EU has with other States like Canada or Japan and that do not only cover trade of goods but also services. It will have to negotiate its own set of agreements but having way less leverage that the EU as a whole because the EU market is way bigger than the one of the UK.
In case of hard brexit the international trade will be based on WTO rules. But it's not actually that simple because UK had to provide the organization with a list of all product categories along with the duties that the British government will collect from them. Also the amounts, i.e. of the goods that can be imported into UK without paying an increased duty rate. It had to be accepted by every member state and I know that some of them had some doubts. Without an acceptance it won't be easy.
Although many people believed that most services are part of the non traded sector this is less and less true in our days due to technological changes via the internet and other communications means. Therefore the services sector in the UK will be affected if a BREXIT especially without agreement takes place. Among the most important sectors in services will be the shipping industry that the UK as an island state developed long ago but also relies in other countries.This is another serious reason for UK to reverse its stand on BREXIT and stay in the EU. This can become a possibility with national elections and a new referendum.
There is no doubt that Britain’s exit from the European Union (Brexit) is one of the most closely watched affairs and news and economic and political events controversial between 2016 and the present time. After the first referendum on June 23, 2016, where the results of the Brexit vote were from the total votes of Britain, Wills, Scotland, Northern Ireland:
Exit: 51.9% of 17,410,742 votes
Survival: 48.1% of 16,141,241 votes
As the results were unpredictable, and they formed a big bang in the global markets, especially in the European economy, as it caused sharp movements and fluctuations in the exchange rates of currencies on the stock market, especially the British pound against the basket of foreign currencies. Are you ready? The next is greatest!