The major bilateral agreements Switzerland–EU - admin.ch · PDF file54% of CH-exports went to the EU, ... • Access to instruments of the international fight against crime and economic

Federal Department of Foreign Affairs FDFA

Directorate for European Affairs DEA

March 2018

The major bilateralagreements Switzerland–EU

Swiss policy on the EU: The bilateral agreements, March 2018© Directorate for European Affairs DEA

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Bilateral agreements Switzerland–EUB

. IB

. II


The first bilateral agreements

1972 Free trade of industrial productsAbolition of obstacles to trade (duties, quotas) for industrial products

1989 InsuranceEqual rights of establishment for insurance companies (excluding life insurances)

1990 (completely revised, 2009)Customs facilitation and securityRegulation of controls and formalities in goods transport (24-hour rule)

► Relevance: Mutual market access

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Free trade

Content• Establishes a Switzerland–EU free trade zone for exclusively industrial

products

• Prohibits customs duty and similar measures for industrial goods originating in the territories of the two contracting parties as well as quantitative trade restrictions (quotas)

Relevance• Crucial for the Swiss economy: In 2016, 54% of Swiss exports

(c. CHF 113bn) went to the EU-area; vice versa, 72% of Swiss imports (c. CHF 124bn) came from the EU

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Entry into force: 1973


Insurance

Content • Grants mutual and equal freedom of establishment to companies in the

field of direct insurance for damage (household, motor vehicle, travel and liability insurance, etc.)

Relevance• Crucial for internationally operating insurance companies

• Important for the Swiss economy: in 2016, the Swiss insurance sector provided jobs for 46,425 people in Switzerland and 71,654 abroad

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Customs facilitation and security

Content • The agreement of 1990 regulates the controls and formalities for goods

transport between Switzerland and the EU

• Aims: simplification of customs clearance of goods and improvement of the cooperation at the borders points

• Amended agreement 2009: precludes the obligation to notify goods traffic in advance (24-hour-rule) and governs the modalities of further cooperation in the area of security

Relevance • Every day 20,000 trucks cross Switzerland’s borders

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Entry into force: 1991; amended agreement 2011


Bilaterals I (1999)

1. Free movement of persons (AFMP)2. Technical obstacles to trade3. Public procurement market4. Agriculture5. Research6. Civil aviation7. Overland transport

► Relevance: Easier access to labour, goods andservice markets

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Free movement of persons (AFMP)

Content • Entitles Swiss and EU citizens under certain conditions to choose their

workplace and residence freely within the territories of the Contracting Parties

• Leads to mutual, gradual and controlled opening up of labour markets through transitional arrangements

• «Accompanying measures» to protect employees (ensuring compliance with pay and working conditions in Switzerland)

Relevance• Important growth effect: Swiss economy is dependent on foreign workers• Better opportunities for Swiss nationals in the EU

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Technical barriers to trade

Content• Mutual recognition of conformity ratings for most industrial products

• Checking of compliance with product regulations, so that a product may be brought to market

Relevance• Swiss manufacturers obtain market access that is almost the same as that

of their EU competitors in the sectors covered by the Agreement

• Entrepreneurs save money and time when marketing their new products

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Public procurement markets

Content • Establishes criteria under which certain procurements must be

internationally and publicly advertised

• The agreement extends the scope of application of the WTO Agreement: it now also covers procurement by regions and municipalities, procurement by public and private companies, e.g. in the sectors of rail transport, gas, and heating supply

Relevance• Lower expenditure for the Confederation, the Cantons and the Swiss

municipalities due to greater competition

• Equal access for Swiss companies to the billion market of the EU

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Agriculture

Content• Facilitates trade in agricultural products between Switzerland and the EU

by reducing► Customs duties: cheese, fruits and vegetables, horticulture, meat and

wine► Non-tariff barriers: i.a. wine and spirits, organic agriculture, pest control

and crop protection, fodder and seeds

Relevance• EU is Switzerland’s main trading partner in the agricultural sector (2016:

54% of CH-exports went to the EU, 72% of CH-imports came from the EU)• Creates export growth: cheese export +2.3% per year (2004–2016)

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Entry into force: 2002; 2011 the Agreement on mutual recognition of Protected Designations of Origin (PDO) and Protected Geographical Indications (PGI) entered into force


Research

Content• Participation of Swiss research (universities, companies, individuals)

in EU research programmes (ERP)• «Horizon 2020»: New generation of programmes

Relevance • Technological, scientific and economic benefit• 100% of the Swiss contributions returned to Switzerland in the form of

project support

State of negotiations• In the follow-up to 9.2.2014, Switzerland and the EU signed on 5.12.2014

an agreement on Switzerland’s partial association with Horizon 2020, which was applicable until the end of 2016

• Full association as from 2017 after Switzerland’s ratification of Protocol III of the AFMP

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Civil aviation

Content• Mutual access to aviation markets for airlines

• Swiss airlines enjoy nearly the same competitive conditions as theirEU competitors and are no longer discriminated against, for example,in landing rights

Relevance• Crucial for the success of Swiss airlines in the highly competitive aviation

market

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Entry into force: 2002; Since November 2011: negotiations on domestic flights by foreign airlines (8th and 9th Freedom)


Overland transport

Content• Mobility: Opens the road and railway transport market for the transport of

persons and goods• Environmental protection: Contributes to the shifting of transalpine freight

traffic from road to rail• Introduction of a heavy vehicle tax and the increase of the maximum

weight limit for trucks to 40 tonnes

Relevance• Everyday 20,000 trucks cross Switzerland’s borders• 2016: 71% of goods traffic crossing the Alps by rail• Revenue from the heavy vehicle tax is used to improve the railways

(2016: CHF 1.45bn)

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Entry into force: 2002,; Transit Agreement: 1992


Bilaterals II (2004)

1. Schengen/Dublin2. Taxation of savings3. Fight against fraud4. Processed agricultural products5. MEDIA (Creative Europe)6. Environment7. Statistics8. Pensions9. Education, vocational training, youth

► Relevance: Enhanced cooperation in other areas, improved economic environment

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Schengen

Content• Facilitates travel by abolishing identity checks at the Schengen internal

borders

• Guarantees security thanks to closer cross-border cooperation between the police and justice systems, i.a. through the Schengen Information System, SIS (as from 9 April 2013: SIS II)

• Switzerland takes part in the common visa policy for short stays of not more than 3 months (Schengen visa)

Relevance• Access to instruments of the international fight against crime and economic

advantages for tourism

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Entry into force operationally: 12.12.2008; end of controls at Swiss airports for flights within the Schengen Area: 29 March 2009


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States of the Schengen AreaNon Schengen Member States with special status Schengen Member State with special status

Future Member States

Associated States

Schengen Area


Dublin

Content• Coordinates national responsibilities for asylum procedures

• Access to the Eurodac fingerprint data bank allows the identification of multiple and abusive asylum applications

Relevance• Prevents costly and inefficient secondary and multiple requests

(«asylum shopping» or «asylum tourism»)

• Relieves the national asylum systems through burden sharing

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Entry into force operationally: 12 December 2008 (as with Schengen)


Automatic exchange of information

Content • Replaces from 2017 the taxation of savings agreement with the EU which

has been in force since 2005 and is applicable to all 28 EU member states

• Based on the OECD’s global standard for the automatic exchange of information (AEOI)

Relevance • CH makes an important contribution to the prevention of tax evasion

• The abolition of taxation at source on the payment of dividends, interest and licence fees between affiliated companies in CH and the EU increases the attractiveness of Switzerland for internationally active companies

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Entry into force: 1 January 2017; Switzerland and EU-28 have been collecting account data as from 2017 and have been exchanging them as from 2018


Fighting against fraud

Content • Improves cooperation in the fight against smuggling and other offences in

relation to indirect taxes (customs, VAT, consumer taxes), subsidies and public procurement

Relevance• Reduces the risk of Switzerland being exploited as a hub for illegal business

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Entry into force: not entered into force yet; early implementation (as of 8 April 2009) by Switzerland in cooperation with those EU countries that have ratified it (all but Ireland); notification by Croatia still pending


Processed agricultural products

Content• Governs trade in processed agricultural products (foods such as chocolate,

biscuits, pasta)

• Revises Protocol 2 of the Free Trade Agreement of 1972

• Allows for duty-free export of Swiss food industry products

Relevance• Increases the competitiveness of the Swiss food industry

• Secures a portion of the Swiss food industry

• Trade in processed agricultural products with the EU has risen by more than 60% since 2005 and amounted to CHF 6.8bn in 2016

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Entry into force: 30 March 2005


MEDIA (Creative Europe)

Content• Switzerland's participation in the EU’s ‘Creative Europe’ framework

programme: EU’s ‘MEDIA’ film funding programme and cultural programme 2014–2020

Relevance• Funding contributions to Swiss film industry, better opportunities for Swiss

films in Europe, greater variety of films on offer in Switzerland

• Funding for Swiss artists, participation in cultural prizes

State of negotiations • The Federal Council has adopted the negotiating mandates for

negotiations with the EU (MEDIA on 13.9.2013 and Culture on 16.4.2014)

• Negotiations have been under way since the EU also adopted a negotiating mandate on 14.11.2014

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Environment

Content• Switzerland's participation in the European Environment Agency (EEA)

• The EEA collects and analyses data on the environmental situation, provides data collection that follows binding criteria, features an Information and Observation Network (Eionet) and advises the European Commission on environmental policy

Relevance• Access to a Europe-wide environment data base which covers many areas

• Participation in the organization of projects and research activities

• Better comparability and harmonization of one’s activities with those of neighbouring countries through intensive exchange of information

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Entry into force: 1 April 2006


Statistics

Content• Adjusts Switzerland's standards of statistical data collection to those of the

statistics office of the EU (Eurostat)

• Provides access to a Europe-wide basis of comparable data on economic, political and social questions

Relevance• A broad statistical base is a prerequisite for sound economic and political

decisions

• Strengthening the negotiating position: in terms of negotiations Switzerland can rely on statistical data according to European standards

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Entry into force: 1 January 2007


Pensions

Content• Abolishes double taxation on the pensions of former EU officials living in

Switzerland

Relevance• This applies only to former officials of EU institutions, such as the European

Parliament, the European Commission, the Council of the EU, and the Court of Justice of the EU, who are now living in Switzerland

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Entry into force: 31 May 2005


Education, vocational training, youth

Content• Switzerland's participation in the EU’s education, vocational training

and youth programmes

• «Erasmus+»: New generation of programmes 2014–2020

Relevance• Improves the offer and mobility in education and vocational training, raises

the quality of education and improves opportunities in the job market

• In 2016 around 8,650 students participated in the exchange programmes

State of negotiations• Interim solution until the end of 2020

• The association to a «Erasmus+» follow-on programme starting from 2021 is being examined

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Bilateral agreements from 2004 onwards

1. Europol2. Eurojust3. Cooperation with the EDA4. Cooperation of competition authorities5. Satellite navigation (Galileo, EGNOS)6. European Asylum Support Office (EASO)

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Europol

Content• Agreement between Switzerland and Europol, the criminal prosecution

authority of the EU

• Improves cooperation between police authorities in the prevention of and fight against serious and organised international crime, and terrorism

• Facilitates the exchange of information and cooperation for analysis

• Allows for the exchange of expertise, participation in training activities as well as advice and support in investigations

Relevance• The exchange of information is steadily increasing and currently amounts to

around 1100 operative notifications per month (2016)

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Entry into force: 1 March 2006; enlargement of area of application: 1 January 2008


Eurojust

Content• Agreement between Switzerland and Eurojust, the European Union’s

Judicial Cooperation Unit

• Expands international cooperation on combating serious crime

• Co-ordinates investigations and prosecution procedures between member states and contributes to the clarification of questions of jurisdiction

• Facilitates the exchange of information, international legal assistance and the execution of extradition requests

Relevance• The number of cases submitted to Eurojust has been steadily increasing

(2016: 2306, +4% compared to 2015)

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Entry into force: 22 July 2011


Cooperation with the EDA

Content• Legally non binding agreement between Switzerland and the European

Defence Agency (EDA) on cooperation in the armaments sector• Enables Switzerland to detect developments in armaments policy at an

early state and to have access to multilateral armaments cooperation in Europe, primarily in the domain of research, development, procurementand maintenance of armaments

• Switzerland remains free to decide on its own what information it wantsto exchange within the scope of this framework, and in what projects and programmes it wishes to participate

Relevance• The agreement strengthens the economic, research and technology

position of Switzerland

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Cooperation of competition authorities

Content• Agreement on cooperation between Switzerland and the EU to efficiently

counter obstacles to cross-border competition

• Shall enable the exchange of confidential information and the cooperation of competition authorities in order to avoid redundancies

Relevance• Crucial due to the close economic interconnections between CH and the EU

• Shall enable greater coherence in decisions that deal with the same issues

• Shall improve the vigor of the Swiss Competition Commission COMCO thanks to relevant information of the EU commission

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Entry into force: 1 December 2014


Satellite navigation (Galileo, EGNOS)

Content • Switzerland’s participation in the EU satellite navigation programmes

Galileo and EGNOS including certain rights to a single seat and to a say• Galileo: reliable and precise satellite navigation system• EGNOS: regional navigation system which improves global satellite signals

in terms of accuracy and reliability

Relevance • Galileo and EGNOS enhance independence vis-à-vis US-GPS• Data availability in times of peace and crisis• Improved situation for Swiss aerospace and service industry in

procurement

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Ratification: 7 July 2015, provisional implementation since 1 January 2014 (ongoing ratification process in EU)


European Asylum Support Office (EASO)

Content • Switzerland’s participation in activities of EASO

• EASO supports Schengen states whose asylum systems are under particular pressure

• EASO facilitates, coordinates and promotes cooperation among states on asylum-related matters

Relevance • Expression of Switzerland’s solidarity

• Strengthening of the Dublin system and contribution to more efficientand fair asylum system within the participating states

• Use of expertise of other Schengen states

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Further information

Switzerland’s European policywww.fdfa.admin.ch/europe_en

Publicationswww.fdfa.admin.ch/europe/publication

Free movement of personswww.personenfreizuegigkeit.admin.ch (German)

suisseurope – Newsletterwww.eda.admin.ch/europa/suisseurope (German)

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Documents

The major bilateral agreements Switzerland–EU - admin.ch · PDF file54% of CH-exports went to the EU, ... • Access to instruments of the international fight against crime and economic