Policy paper

UK-Switzerland Enhanced FTA Strategic Approach Chapter 3: Response to the Call For Input on Trade Negotiations with Switzerland

Published 15 May 2023

This was published under the 2022 to 2024 Sunak Conservative government

For further information, see the full UK approach to negotiating an enhanced free trade agreement with Switzerland.

Introduction

This document is the government’s response to the public call for input on an enhanced UK-Switzerland Free Trade Agreement (FTA) launched on 28 April 2022. Consumers, businesses, civil society, and members of the public were asked to provide feedback on which aspects of current trading arrangements with Switzerland we should look to improve or amend. The Department for Business and Trade (DBT) would like to thank all those who engaged with the process.

This document contains a summary of the responses received in the public consultation going through each response by policy area. It also includes DBT’s approach to stakeholder engagement. Engaging with stakeholders is crucial for negotiating an agreement that works for the whole of the United Kingdom and delivers for all sectors of the economy.

The UK’s strategic case and negotiating objectives set out the government’s overall approach for talks on an enhanced UK-Switzerland FTA. The scoping analysis provides a preliminary analysis of the potential benefits of an enhanced FTA.

Overview of responses

Over the 8 weeks that the call for input was open, we received submissions from 113 respondents representing a broad range of stakeholders from across the UK.  

This table gives an overview of the types of responses received. The responding business associations collectively represent nearly 600,000 businesses and organisations, and over 13 million employees. 

Type of respondent	Description	Number of responses
Business	Responding in an official capacity, representing the views of an individual business	42
Business association	Responding in an official capacity, representing the views of a business representative organisation or trade association	36
Individual	Those responding with personal views, rather than as an official representative	17
Public sector body	Responding in an official capacity as a representative of a devolved administration, local government organisation, public service provider or other public sector body in the UK or elsewhere	11
Non-governmental organisation	Responding in an official capacity as the representative of a non-governmental organisation, academic institution, trade union or other organisation	7

Key areas of focus

Overall, stakeholders wanted the existing benefits achieved through the current trading framework to be retained and enhanced.

A number of reoccurring points were raised by respondents in the consultation to enhance the bilateral trade and investment relationship with Switzerland. These include deepening our relationship in:

• services
• tariffs
• customs and trade facilitation
• intellectual property
• innovation

Sectoral interest

The call for input drew interest from all sectors of the UK economy. Stakeholders across the sectors viewed prospective negotiations for an enhanced FTA as an opportunity to develop the existing trading relationship further, building on what had been achieved to date.

Agri-food stakeholders expressed interest in mutually lowering or removing tariffs on remaining agricultural products. Upholding and championing intellectual property was important to stakeholders in the creative industries.

Regarding financial services, respondents saw a significant opportunity to open up market access through greater regulatory cooperation. They also saw the need to secure strong commitments on mobility, the recognition of professional qualifications (RPQ) and data to enable the sector to capitalise on these gains.

There was a desire for the UK and Switzerland to deepen regulatory cooperation across a number of sectors, including life sciences, artificial intelligence, financial technology, agriculture and emerging regulatory issues.

Respondents, particularly small and medium enterprises (SMEs), expressed an interest in simplified customs processes and reduced customs paperwork, especially for trusted traders. Stakeholders urged that an enhanced FTA reflect plans underway for the digitisation of customs procedures. Exporters of goods across sectors welcomed the benefits achieved to date through the current arrangements on rules of origin. Several looked for clearer, simpler and more flexible rules, with some respondents calling for better cumulation between the UK, Switzerland and the European Union where this is possible.

Responses by policy areas

This section contains more detailed information about policy areas raised in the consultation. An explanation of the policy and current UK-Swiss arrangements is provided alongside a summary of the feedback from respondents.

These include (in alphabetical order):

• animal welfare and sanitary and phytosanitary measures
• anti-corruption
• competition, consumer protection, subsidies and state-owned enterprises
• customs and trade facilitation
• development
• digital
• dispute settlement
• environment
• financial services
• gender equality
• good regulatory practice
• innovation
• intellectual property
• investment
• labour
• procurement
• rules of origin
• services
• small and medium-sized enterprises
• tariffs/goods market access
• technical barriers to trade
• telecommunications
• trade remedies

Animal welfare and sanitary and phytosanitary measures

Sanitary and phytosanitary (SPS) measures ensure that food is safe for consumers and prevents the spread of pests or diseases among animals and plants. The current UK-Switzerland Trade Agreement does not include provisions on SPS, animal welfare or antimicrobial resistance.

Stakeholders replying to the consultation highlighted their support for SPS measures in trade to safeguard the UK’s high standards. Switzerland’s SPS regime is harmonised with the European Union (EU), and respondents raised issues around current additional barriers to trade, particularly around powdered foods. Stakeholders also called for a dedicated chapter on animal welfare to embed a shared commitment on high standards and promote the quality of British products.

Switzerland has precedent for including an SPS chapter in its FTAs, both bilaterally and as part of agreements signed by EFTA. They have not previously included animal welfare or antimicrobial resistance provisions. The UK has included SPS, animal welfare and antimicrobial resistance provisions in FTAs, such as those with Australia and New Zealand and will seek to include these in a UK-Swiss FTA. The UK and Switzerland both have high standards and protections for consumers. The UK will maintain its own autonomous SPS regime and will not compromise on these high standards.

Anti-corruption

Tackling corruption is part of the 2030 Agenda for Sustainable Development and is appearing more frequently on the international policy agenda. Provisions on anti-corruption are becoming increasingly common in trade agreements. The current UK-Switzerland Trade Agreement does not include provisions on anti-corruption.

Respondents to the consultation noted that anti-corruption provisions should be included in an enhanced FTA with Switzerland.

Switzerland has not covered anti-corruption in previous FTAs. However, they play an active role in multilateral fora in this area (such as the Organisation for Economic Co-operation and Development (OECD) and the United Nations Convention against Corruption). The UK government is committed to tackling corruption, to ensure free and fair global trade and competition.

The UK has a strong anti-corruption framework through the UK Bribery Act 2010, and the government is seeking to build partnerships and uphold standards in this area. As seen in recent FTAs, such as those with Australia and New Zealand, the UK will seek provisions that address the trade-distorting effects of corruption on global trade, investment, and fair competition to help maintain the UK’s high standards in this area.

Competition, consumer protection, subsidies and state-owned enterprises (SOEs)

Competition policy, SOEs and subsidies provisions ensure there is open and fair competition for businesses in each other’s markets. Consumer protection provisions ensure that consumers are protected from harmful business practices. Competition policy covers the rules and regulations concerning the way businesses operate within a market and the enforcement of such rules to ensure that markets remain competitive for the benefit of consumers. SOE provisions provide for open and fair competition between commercially oriented SOEs and private businesses, for example, rules around non-discrimination and subsidies to SOEs. The current UK-Switzerland Trade Agreement does not include provisions on SOEs, subsidies, or consumer protection but has provisions directly on competition.

Feedback from respondents focused on the prevention of anti-competitive practices that result from monopolies, and market dominant segments. In addition, it was noted that non-discrimination rules applied to state-owned enterprises could allow UK businesses to compete on an equal footing to their Swiss counterparts.

Both the UK and Switzerland have agreed commitments related to competition policy, subsidies and state trading enterprises in their trade agreements. In relation to consumer protection, the UK has precedent for a consumer protection chapter in comparison to Switzerland’s limited precedent for consumer e-commerce commitments. The UK will pursue provisions that provide open and fair competition for UK firms and ensure core consumer rights are protected.

Customs and trade facilitation 

Customs procedures are applied by customs authorities to control the export, import and transit of goods. Ensuring that customs procedures are efficient, consistent, and transparent helps reduce friction at the border and facilitate trade. It can reduce costs and administrative burdens for businesses. A customs and trade facilitation chapter in a trade agreement ensures that procedures at the border are as facilitative as possible to make importing and exporting easier. The current UK-Switzerland Trade Agreement does not include a customs and trade facilitation chapter. However, it does contain provisions for both sides to review arrangements. Furthermore, the UK-Swiss Authorised Economic Operator (AEO) Mutual Recognition Agreement, which entered into effect in September 2021, aims to provide continuity for UK and Swiss AEO businesses replicating benefits previously provided through the EU-Switzerland Customs Security Agreement.

Respondents asked for simplified customs processes and reduced customs paperwork wherever possible, especially for trusted traders. They also called for the digitisation of customs procedures, and noted the value of measures to streamline movement of goods through customs, especially for perishable goods.

Like the UK, Switzerland has fully implemented the World Trade Organization (WTO) Trade Facilitation Agreement and has precedent for including trade facilitation chapters in its FTAs. As seen in recent FTAs, such as those with Australia and New Zealand, the UK will seek a modern, comprehensive and ambitious customs and trade facilitation chapter.

Trade and development 

Trade is a key driver of economic growth which can trigger positive changes in a country’s economy, helping to raise incomes, create jobs and lift people out of poverty. The existing UK-Switzerland Trade Agreement does not include any trade and development provisions.

Respondents noted that supporting and strengthening global sustainable development was an issue that should be addressed in an enhanced trade agreement with Switzerland.

Switzerland has no precedent of including any trade and development provisions in previous FTAs. As part of the UK’s independent trade policy, the government has committed to assessing the impacts of trade agreements on developing countries and considers measures to address risks and maximise opportunities for development. This helps deliver on its public commitment to ensure trade and development policies remain mutually reinforcing. This has been evidenced by the standalone Trade and Development Chapters the UK concluded with Australia and New Zealand. The UK will therefore work closely with Switzerland on trade and development priorities with the aim of monitoring the impact of the FTA on developing countries outside the agreement.

Digital 

Digital marketplaces and data flows have grown exponentially over the last decade. Data underpins modern trade, forming a core part of global value chains. The current UK–Switzerland Trade Agreement does not include a digital chapter.

Respondents called for a digital chapter to enshrine commitments on cross-border data flows and maximise collaboration on data sharing. This would support cross-border trade whilst maintaining high personal data protection standards. The UK-Singapore Digital Economy Agreement (DEA) was repeatedly highlighted as an example of best practice in this regard. Stakeholders also spoke of the importance of preserving EU data adequacy by maintaining high standards to allow a 3-way flow of data to continue. In addition, they noted the importance of collaborating on cyber security and prohibiting unjustified data localisation requirements. The protection of intellectual property, including source code and encryption technologies, and commitments on digitised customs procedures were other areas raised by stakeholders.

Switzerland has included several digital trade commitments in their bilateral agreement with Japan. The UK is a strong supporter of digital provisions within trade agreements, such as those contained within FTAs with Australia and New Zealand as well as the Singapore DEA and the UK-Ukraine Digital Trade Agreement. The UK will seek modern and ambitious provisions that ensure digital markets are open and facilitate more efficient and secure trade and investment.

Dispute settlement

Dispute settlement is commonly used in reference to the formal state-to-state mechanism for resolving disputes where one or more parties consider that there has been a breach of obligations under the relevant international trade agreement, and it has not been possible to resolve the dispute informally. The current UK-Switzerland Trade Agreement sets out the responsibility of a Joint Committee for the proper implementation of the agreement, but does not set out any formal dispute settlement mechanism.

While respondents to the consultation did not specifically refer to dispute settlement, it is a fundamental component of any FTA.

Switzerland has included dispute settlement in previous bilateral and EFTA FTAs. The UK considers a strong and effective dispute settlement mechanism to be an essential part of modern and comprehensive FTAs to maintain adequate implementation of the agreement and enforcement commitments between parties. They facilitate the resolution of state-to-state disputes in a manner that is fair and timely, promoting certainty for stakeholders. This builds on the precedents set in the UK’s FTAs with Australia and New Zealand. The UK will seek to include comprehensive provisions that ensure effective and timely dispute settlement.

Environment 

The UK remains committed to maintaining its high standards of environmental protection in trade agreements, and to reaffirming our continued right to regulate, including to meet Net Zero. The current UK–Switzerland Trade Agreement does not include any commitments on the environment. Numerous respondents noted the importance of environment and climate change provisions in any future agreement. These should reflect the UK’s climate ambitions and explore opportunities to cooperate with Switzerland to further these goals, particularly in supporting trade in environmental goods and services. Respondents across a range of sectors raised areas of interest including supporting innovation in green technologies, developing aligned approaches towards green and sustainable finance, promoting climate-friendly practices and helping both countries transition to net zero. Respondents also stressed the need to maintain the UK’s current environment standards and to ensure UK businesses are not disadvantaged.

Switzerland has included chapters on trade and sustainable development in bilateral and EFTA FTAs, which cover workers’ rights and inclusive economic growth, as well as the environment. Switzerland and UK both have similar precedents on areas like right to regulate, non-derogation, promoting trade in environmental goods and services and strengthening cooperation in the FTAs that they are party to. The UK has precedent of dedicated environment chapters in FTAs, including with Australia, New Zealand and EEA EFTA. The UK will continue to demonstrate global leadership on the climate and environment, ensuring commitments that support and further our shared goal of net zero greenhouse gas emissions by 2050.

Financial services

Financial services were the UK’s second largest export in services trade in 2022, worth £2.3 billion.[1] The UK and Switzerland are 2 leading financial services jurisdictions with a strong track record of leadership in enhancing global financial services trade. The current UK-Switzerland Trade Agreement contains no provisions on financial services.

Respondents identified a significant opportunity to open up market access through greater regulatory cooperation. They also highlighted the need to secure strong commitments on mobility, mutual RPQ and data to enable the sector to capitalise on these gains.

Switzerland and EFTA often annex Financial Services content rather than including a separate chapter. This approach is also frequently found in agreements negotiated by the European Union. The UK often takes a different approach, with recent FTAs including standalone chapters on financial services. The UK will seek to expand opportunities for UK financial services, easing frictions to cross-border trade and agreeing ambitious provisions.

Trade and gender equality 

Gender equality is a crucial issue, affecting all areas of trade. The UK is committed to a trade policy that upholds gender equality and which promotes the role of women in trade both domestically and around the world. The current UK-Switzerland Trade Agreement does not include provisions on gender equality.

A number of respondents highlighted the importance of keeping gender equality at the top of negotiation agendas, and seeking provisions to improve it, for example around equality of access to services for women.

Switzerland has not previously included a chapter on gender equality in bilateral FTAs. The UK has included gender equality provisions in Agreements it has signed with Australia, New Zealand and EEA EFTA which aim to increase the ability of women to access the benefit of our FTA.

Good regulatory practice

Good Regulatory Practice (GRP) helps create a predictable, transparent and stable regulatory environment, a key factor for businesses when deciding whether to enter overseas markets. In all FTA negotiations, the government aims to reduce non-tariff barriers to trade, creating a stable regulatory environment for businesses. The current UK-Switzerland Trade Agreement contains no specific GRP provisions.

A number of respondents backed the inclusion of dedicated GRP provisions in an enhanced FTA to ensure stable and transparent regulatory environments and reduce unnecessary non-tariff barriers to trade. Some highlighted the importance of future proofing the regulatory trade environment - a key consideration for UK businesses currently trading with Switzerland. Other stakeholders were also keen to have increased regulatory dialogue and cooperation.

While Switzerland has no precedent for including a GRP chapter, they have agreed to 7 FTAs with specific transparency chapters, some of which contain GRP provisions. Both the UK and Switzerland have high rankings from the Organisation for Economic Co-operation and Development (OECD), and there is already significant alignment between our regulatory policy systems, which we hope to build on in an enhanced FTA with Switzerland. The UK has negotiated GRP chapters in a number of FTAs, including those with Australia, New Zealand, EEA EFTA and the EU. In an FTA with Switzerland, the UK will aim to reduce regulatory obstacles, facilitate market access and improve trade flows by encouraging a transparent, predictable and stable regulatory environment.

Innovation 

The UK and Switzerland are 2 global leaders in innovation, with Switzerland ranking number one and the UK number 4 in the Global Innovation Index. In FTAs, provisions on innovation aim to provide a mechanism to discuss the impacts that innovation can have on trade and helps to ensure the agreement remains fit for purpose as our economies grow. The current UK-Switzerland Trade Agreement contains no innovation provisions.

Respondents indicated a desire for the UK and Switzerland to deepen cooperation across a number of sectors in this area, including life sciences, artificial intelligence, financial technology, agriculture and emerging regulatory issues. They noted the value of an innovation chapter, and a desire to see one included within the FTA.

Switzerland has not included a chapter on innovation in previous FTAs. As set out in the UK’s Innovation Strategy, our ambition is to be a global leader in innovation and secure innovation chapters within FTAs with strategic partners, as we did with Australia. The UK will look to ensure that an FTA with Switzerland is innovation-friendly and is fit for purpose as new technologies emerge and our trade relationships and economies grow.

Intellectual property  

Intellectual property-rich creative industries make a significant contribution to the UK economy, with £64 billion of intangible investment in the UK being protected by intellectual property (IP) rights in 2015.[2] IP covers creations of the mind and these are protected by law by a variety of IP rights such as patents, copyright, trade marks, design rights and geographical indications (GIs). There is no IP chapter in the current UK-Switzerland Trade Agreement.

Respondents recognised that the UK and Switzerland both currently have high standards across a range of IP rights. Stakeholders raised opportunities in a number of different areas, including enforcement and copyright, for further collaboration.

Switzerland has precedent for including IP chapters in FTAs, both bilaterally and as part of EFTA. The UK has included IP chapters in its FTAs, as seen in agreements with Australia and New Zealand, covering a comprehensive range of IP rights. The UK recognises the need for this agreement to deliver a balanced outcome for right holders, users, consumers, and wider societal interests.

Investment 

The government recognises the importance of FTAs in facilitating investment flows, through reducing barriers to investment and ensuring legal certainty for investors. The current UK-Switzerland Trade Agreement does not include provisions on investment.

Overall, respondents called for ambitious provisions that remove barriers to investment, ensure the fair treatment of overseas investments and attract more investment into the UK. This would be through an investment chapter or other relevant provisions. Some respondents expressed opposition to the inclusion of investor state dispute settlement (ISDS) provisions.

Switzerland’s existing FTAs include commitments that improve the legal framework conditions for investors, including investment liberalisation and investment promotion. As it has in its FTAs with Australia and New Zealand, the UK will look to agree commitments with Switzerland that facilitate investment flows, through addressing barriers to investment and ensuring legal certainty for investors.

Labour 

The government shares the public’s high regard for worker protections and has made clear that we will not compromise on these in FTAs. The UK will maintain its standards on workers’ rights. The current UK-Switzerland Trade Agreement does not include provisions on labour.

The majority of respondents acknowledged high labour standards in both the UK and Switzerland. Many stressed that the new agreement should look to maintain and reflect these high labour standards. The UK and Switzerland both have similar precedents on areas like right to regulate, non-derogation, enforcement of labour laws, and cooperative measures in the FTAs that they are party to. Switzerland is party to numerous FTAs with labour provisions, including in its bilateral agreements with Indonesia, Japan and China. In some policy areas that the UK does have precedent on, such as modern slavery, Switzerland has not made commitments in the past. The UK has labour chapters in all of its new FTAs negotiated from scratch since leaving the European Union. In an FTA with Switzerland, the UK will seek to maintain its standards on workers’ rights, reaffirming commitments to international labour standards.

Procurement 

A procurement chapter includes provisions that aim to support access for UK suppliers to the trading partner’s government procurements (and vice versa). The existing UK-Switzerland Trade Agreement contains procurement provisions that build upon the rules and access granted under the WTO’s Agreement on Government Procurement (GPA).

Respondents called for greater access to Swiss public sector contracts and a level playing field that operates at national, cantonal and city state levels. There was significant support across a range of industries (including telecoms, rail, and financial and professional services) for greater access to Swiss public sector procurement contracts. Consistency of access and rules across EEA EFTA and the EU is desirable for businesses.

Switzerland uses an approach of incorporating the GPA in its FTAs with GPA Parties by reference (rather than setting it out again). The UK however uses different precedents with different GPA Parties – both setting it out with further amendments to enhance it (including FTAs with Australia and New Zealand) and making reference to it similar to Switzerland and making additions (the agreements with EEA EFTA and the EU). The UK is committed to procurement provisions within trade agreements that promote competition, non-discrimination and transparency within the government procurement markets of the trading partner. The UK will seek to maximise access for UK businesses to compete for procurements at all levels of Swiss government, whilst ensuring appropriate protections remain in place for key public services such as NHS health and care services and broadcasting.

Rules of origin 

Rules of origin are used to determine the ‘economic nationality’ of a good. In FTAs, their purpose is to define which goods can benefit from the agreement, ensuring that it is the traders of the parties to the agreement that benefit from tariff reductions. Under the current UK–Switzerland Trade Agreement, goods must “originate” in either the UK or Switzerland in order to benefit from the preferential tariff rates. The UK-Switzerland Trade Agreement also includes cumulation provisions that allow EU materials to be recognised as originating in UK and Switzerland exports to one another to provide continuity for business after the UK left the EU. This also applies to materials from any country of the Pan-European Mediterranean (PEM) Convention with whom the UK and Switzerland both have an FTA. Stakeholders welcomed the benefits achieved to date through the current arrangements. Several looked for clearer, simpler and more flexible rules, with some respondents calling for better cumulation between the UK, Switzerland and the European Union where possible.

Switzerland is generally disposed to trade facilitation and modernised administrative processes. The UK will seek flexible and facilitative rules, such as those in its FTA agreements with Australia and New Zealand, to minimise costs and encourage uptake of preferential access by UK business, especially SMEs. The government recognises that existing preferential access and certainty for supply chains are vital for both UK and Swiss businesses. The UK will seek simple and modern rules of origin, which recognise both existing and future supply chains, and are supported by predictable and low-cost administrative arrangements.

Services 

Services are the predominant driver of the UK economy, contributing around 80% of economic activity each year and employing over 26 million people (approximately 82% of total employment).[3] The 2019 UK-Switzerland Trade Agreement contains no substantive services provisions, meaning that UK-Switzerland services trade currently rely on the rules under the WTO’s General Agreement on Trade in Services (GATS). This represents the level of access and the treatment granted to all WTO members.

In December 2020, the UK and Switzerland signed the Services Mobility Agreement (SMA), which both sides agreed to extend in November 2022 for an additional 3 years. Outside of the SMA, Switzerland has little third country Entry and Temporary Stay precedent and businesses have emphasised the importance of strong business mobility commitments such as procedural facilitation in supporting UK business persons accessing the Swiss services market.

Respondents also highlighted the potential benefits from better market access for UK businesses, including through greater regulatory cooperation and recognition of professional qualifications, as well as data flows to enable the sector to capitalise on these gains.

Switzerland has FTA precedent for provisions on services that build on the outcomes of GATS in areas including market access, mobility and the recognition of professional qualifications, for example in their bilateral agreement with Japan. The UK has precedent for ambitious trade in services provisions as part of wider packages of services and investment chapters and annexes, such as in its FTAs with the EU, EEA-EFTA, Australia and New Zealand. The UK will reflect stakeholder views and priorities as it seeks to bring together and build on these precedents in the FTA.

Small and medium-sized enterprises 

Small and medium-sized enterprises (SMEs) make up over 99% of all businesses in the UK and Switzerland and are responsible for a significant amount of trade between our countries.[4], [5] The government is committed to seeking FTAs that reduce potential barriers to international trade faced by smaller businesses, which often have fewer resources than their larger counterparts. There are no SME provisions in the current UK-Switzerland Trade Agreement.

Respondents called for a dedicated SME chapter in an enhanced FTA as a priority. In addition, many called for better information sharing provisions on various trade issues, accessible to businesses of all sizes. Switzerland has no precedent for including an SME chapter. By contrast, the UK has negotiated SME chapters in various agreements, including those with Australia, New Zealand, EEA EFTA and the EU. To help SMEs take advantage of the trade opportunities created by an FTA with Switzerland, the UK will seek dedicated SME provisions to facilitate cooperation and information-sharing, helping small businesses navigate the requirements for exporting to each other’s markets.

Tariffs and goods market access 

Tariffs are customs duties on imported goods. Outside of trade agreements, tariffs are applied on a Most Favoured Nation (MFN) basis. Under the current UK-Switzerland Trade Agreement, 79% of Switzerland’s tariff lines on imports from the UK are fully liberalised, covering about 99.5% of the value of current Swiss imports from the UK on average between 2018 and 2020.[6] All non-agricultural products are fully liberalised under the current agreement.

Respondents expressed interest in lowering or removing tariffs where these remain in place on agricultural products, including those relating to beef, lamb, dairy, processed foods and horticulture. A number of respondents raised that the complexity of the present arrangements presents a barrier for some exporters.

Tariffs are a usual part of FTA negotiations for both the UK and Switzerland. In comparison to the UK, Switzerland has typically offered more limited tariff liberalisation, particularly in agricultural market access. In previous UK FTAs, such as those with Australia and New Zealand, the UK has generally liberalised tariffs, with protections in place. The UK will secure reductions or the removal of remaining tariffs for UK exports, reflecting UK producer interests.

Technical barriers to trade 

Technical barriers to trade (TBT) are regulations, standards, testing and certification procedures applied to imports and exports which could obstruct trade. The current UK-Switzerland Trade Agreement does not contain a dedicated chapter on technical barriers to trade. However, TBT elements feature in the incorporated Agriculture Agreement and 3 key sectors rolled over from the EU-Switzerland Mutual Recognition Agreement (MRA).

These include motor vehicles, good laboratory practice and medicinal products, good manufacturing practice (GMP) inspection and batch inspection. On 17 November 2022, the UK and Switzerland signed a Mutual Recognition Agreement to reduce non-tariff barriers related to conformity assessment in a further 5 sectors. These are electrical equipment and electromagnetic compatibility, measuring instruments, radio equipment, transportable pressure equipment, and noise emitting equipment for use outdoors.

Respondents called for the high standards held by both countries to be maintained and clearly defined. Generally, stakeholders look to a continuation of the existing regulatory relationship between the UK and Switzerland, including the UK-Switzerland mutual recognition agreements on conformity assessment. A number of submissions requested the inclusion of a modern TBT chapter to facilitate mutual recognition and encourage regulator cooperation and information exchange.

TBT is a staple chapter in most modern FTAs and appears in Switzerland’s bilateral agreements with China and Japan. All UK free trade agreements to date protect our right to decide our own regulatory standards and how the UK enforces them. Whilst reducing technical barriers to trade the UK will continue to protect this and uphold the safety and quality of our products.

Telecommunications

Telecommunications provisions in trade agreements support competition in the telecommunications sector, enabling market access for services providers, creating a more effective and innovative global telecommunications sector and benefiting consumers. The current UK-Switzerland Trade Agreement does not contain a telecommunications chapter.

Respondents were keen to ensure that the Swiss telecommunications market is open, non-discriminatory, and pro-competitive. They also looked for a consistent UK approach with other agreements on telecommunications trade with Switzerland.

The UK and Switzerland are both signatories to the WTO Telecommunications General Agreement on Trade in Services (GATS) Annex and Reference Paper. The UK has agreed several telecommunications chapters with partners including Australia, New Zealand and EEA EFTA, building on rules in GATS. Within a telecommunications chapter, the UK will seek to promote a liberal and non-discriminatory market that minimises barriers and secures greater connectivity for UK consumers and businesses.

Trade remedies

Trade remedies refer to policy measures that are used to protect domestic industries from unfair trade practices or unexpected surges in imports. The current UK-Switzerland Trade Agreement does not have a dedicated trade remedies chapter and only includes a handful of provisions, many of which are outdated and not in line with the UK’s core trade remedies policy.

Respondents noted that trade remedies should be included within an enhanced UK- Switzerland FTA and that opportunities should be explored on how to expand and improve on our current trade remedies provisions. Many highlighted the prospect of developing a distinct trade remedies chapter that is fit for purpose, bringing all the relevant provisions in one place.

Switzerland has indicated that they are reluctant to include trade remedies provisions. The UK recognises trade remedies as an important part of a balanced approach to trade, providing an opportunity to affirm our obligations under WTO agreements and assure domestic industry. The UK has a good track record of securing comprehensive trade remedies chapters in its FTAs as seen in the UK’s agreements with Australia, New Zealand and EEA EFTA. The UK will seek provisions that uphold our WTO commitments and facilitate trade liberalisation whilst protecting against unfair trading practices.

Approach to stakeholder engagement

We are grateful to those who responded to the 8-week public call for input on an enhanced FTA with Switzerland and recognise the significance and weight of the feedback on the topics raised. The Department for International Trade (DIT) [7] worked closely with other government departments during the consultation period and subsequently to analyse the feedback. The feedback gathered from this consultation will continue to inform our overall approach to negotiations on an enhanced FTA with Switzerland.

To build a trade policy that works for the whole of the UK it is crucial that we engage with stakeholders and call upon expert views and opinions to help inform our work. We recognise the importance of developing a trade policy that commands broad public support, with policy objectives that can be met while mitigating the concerns raised by respondents. We will aim to maximise the benefits felt across UK society and its regions.

All voices are important, which is why DBT seeks to consult as widely as possible to ensure new international trade agreements and future trade policy benefits the whole of the UK.

To ensure that an enhanced FTA with Switzerland works for the whole of the UK, we will ensure that Parliament, the devolved administrations (DA’s), local government, business, trade unions, civil society, and the public from every part of the UK have the opportunity to engage and contribute throughout the lifecycle of the negotiations.

We will continue to engage through:

• engagement and outreach events across the whole UK, including stakeholders roundtables in each nation. Any organisations interested in speaking to us about an enhanced FTA with Switzerland should do so by emailing [email protected]

• the Strategic Trade Advisory Group (STAG), to seek informed stakeholder insight and views on relevant trade policy matters

• Trade Advisory Groups (TAGs) and Thematic Working Groups (TWGs), to contribute to policy development at a detailed technical level

• the Trade Union Advisory Group and regular roundtables with Civil Society groups;
• For further information on advisory groups get in touch by emailing [email protected]

The government is committed to ensuring that our trade policy is transparent and subject to appropriate parliamentary scrutiny. As part of this commitment, DBT will provide regular updates through a variety of communication channels and fora throughout negotiations. We will review our approach to engagement at each stage of the programme in order to assure that existing mechanisms are fit for purpose. We welcome further and ongoing feedback and input from stakeholders on our approach to engagement.

Engagement with devolved administrations, crown dependencies and Overseas Territories

The UK government is responsible for negotiating and agreeing international trade agreements on behalf of all the nations and regions in the UK. Trade negotiations intersect with domestic policy areas that are devolved to the nations, such as public procurement, the provision of public services and environmental standards. As such, the devolved administrations in Wales, Scotland and Northern Ireland have a significant interest in international trade policy. The UK government is working closely with the devolved administrations to deliver an international trade policy that reflects the interests of all the nations within the UK.

We have built close working relationships with colleagues in Wales, Scotland and Northern Ireland at a ministerial and official level on trade matters. These discussions will continue to develop as the UK pursues an ambitious independent trade agenda.

The government also fully recognises the constitutional responsibilities it holds towards the Crown Dependencies and Overseas Territories. We work closely with these stakeholders to ensure that their interests are actively represented in our FTA programme and directly in trade negotiations.

If you want to learn more about talks on an enhanced UK-Switzerland FTA reach out to us at [email protected]

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[1] ONS (2023), UK trade in service: service type by partner country, non-seasonally adjusted, January 2023 edition

[2] Intellectual Property Office (2016), UK intangible investment and growth

[3] ONS (2019), Services sector, UK: 2008 to 2018

[4] BEIS (2022), Business population estimates for the UK and regions 2022

[5] SECO SME portal, Figures on SMEs: Companies and jobs

[6] DBT calcs using tariff data from The Federal Office for Customs and Border Security (Tares) (2021), ad valorem equivalents (AVEs) from ITC Market Access Map (MacMap) for 2020 and average Swiss imports from the UK between 2018-20 from ITC TradeMap

[7] The call for input was originally issued by the Department for International Trade (DIT) which has since moved to the Department for Business and Trade (DBT)