In addition to goods, trade in services is also on the agenda. The Uk is keen to improve access to the UK service market in the areas of accounting, architecture and finance, as well as free movement and mutual recognition of professional qualifications. Any existing EU agreement, which will not be rushed, will end on 31 December and future trade will take place on WTO terms until an agreement is reached. The UK and THE EU are negotiating a trade deal that is expected to start on 1 January 2021, when the new UK-EU relationship will begin. We show in our investigations that even if the United Kingdom manages to conclude preferential trade agreements with the United States and Commonwealth countries, the negative effects of Brexit will not be offset. Since the EU is the UK`s largest trading partner, the UK will benefit the most from a comprehensive free trade agreement with the EU. However, Brexit has caused some complications in the exchange of services between Britain and the United States. For example, exit from the single market could undermine the UK`s commitment to the „single passport” protocol, which allows UK subsidiaries of US banks to provide cross-border financial services within the EU. As the main destination for British exports and second largest for British imports, the United States plays a crucial role in Britain`s foreign trade after Brexit. Trade between the United Kingdom and the United States grew steadily after 2009, albeit unspectacular, with bilateral trade sales exceeding pre-recession levels until 2015. During this period, trade balances in goods fluctuated between deficits and surpluses. However, the United Kingdom has permanent deficits in services-related trade with the United States.
Anglo-American trade reached a total of $226.9 billion in 2016, of which 51.6% was for services. The U.S.-Japan trade agreement came into force this year after six months of negotiations and an expedited approval process in the United States. However, this was just another mini-deal focused on tariffs and digital trade. This suggests that a comprehensive agreement between Britain and the United States would take much longer and require a vote in Congress. Transportation machinery and equipment and chemicals accounted for the largest share of bilateral merchandise trade, with the United Kingdom running a deficit in the former and a surplus in the former.