The European Union and Switzerland have been in a trade agreement since 1972. However, the current trade agreement, known as the EU-Switzerland Free Trade Agreement (FTA), was signed in 1977 and entered into force in 2002. This agreement provides for the free movement of goods between the two parties, including agriculture, processed products, and industrial goods.
The EU-Switzerland FTA is based on the principle of non-discrimination, which means that both the EU and Switzerland apply the same rules and tariffs to goods and services. The agreement also includes provisions on intellectual property, public procurement, and technical barriers to trade. In addition, it allows for the mutual recognition of conformity assessments, which means that products tested and certified in one country can be sold in the other without the need for further testing.
Although the EU-Switzerland FTA has been in place for almost two decades, negotiations for a new agreement have been ongoing since 2014. The aim of these negotiations is to modernize the existing agreement and to address new areas of cooperation, such as services, labor, and the environment.
One of the main sticking points in the negotiations has been the issue of institutional framework. Switzerland is not a member of the EU, and as such, it does not participate in its decision-making process. The EU has been pushing for a more streamlined framework that would allow for the smooth implementation and enforcement of the new agreement. Switzerland, however, has been reluctant to give up its sovereignty and has been pushing for more flexibility in the institutional arrangements.
Despite the challenges, both parties have expressed their commitment to reaching a new agreement. The EU is Switzerland`s largest trading partner, with bilateral trade amounting to over €200 billion in 2019. A new agreement would provide for a more stable and predictable trading environment for both parties, which would be beneficial for businesses and consumers.
In conclusion, the EU-Switzerland trade agreement has been a cornerstone of the two parties` economic relations for over four decades. While negotiations for a new agreement have been ongoing, both parties remain committed to reaching a mutually beneficial outcome. A new agreement would provide for a more modern and comprehensive framework that would facilitate trade and cooperation in a wide range of areas.