Without encryption, internet doesn't work. Without internet, banking and e-commerce doesn't work. Really, not a single user-identifying service can function without encryption.
Also, encryption is based on math and logic. You can't really prohibit people from using it, or having it in any sensible way. Meaning that if we live in a fantasy land where this became outlawed, you'd still have any two nodes using encryption should they wish to. I doubt terrorist have the necessary incentive to follow international laws.
In fact, a mathematically unbreakable encryption is simply generating random data (aka. a one-time pad https://en.wikipedia.org/wiki/One-time_pad), and having a copy of this data at each end of the communication. Want to transfer sensitive data across the border? Just xor your data with the random data, and take the random data with you across the border. If the microSD card didn't leave your butt-crack at any point, you can merrily download the xor-ed data through NSA's mainframe, and they can't do jack about it, even with quantum computing, or any imaginable alien technology.