Yet people and governments around the World still use IT services provided by the USA, even though they know their data is utterly compromised by doing so.
The USA does not ban secure software completely. At the moment there is a chance that a US or UK company's software is government compromised. If this bill becomes law in the UK then all UK software must legally be government compromised.
they do. Steven Levy's crypto wars highlights the lengths America went to destroy secure software.