More Switzerland-GB: end of negotiations on updated free trade agreement (cross-border guide)

Context

More Switzerland-GB: end of negotiations on updated free trade agreement

In a nutshell

• The Swiss Confederation and the United Kingdom have formalized the completion of negotiations regarding an update of the free trade agreement, signed in 2019 and revised in 2024.
• The agreement aims to reduce administrative barriers, simplify trade procedures and facilitate mutual market access.
• Strategic sectors such as financial services, life sciences, technology and innovation will benefit from particular advantages, with a potential increase in trade and investment.

Key facts

• What: Conclusion of the negotiations on the update of the Switzerland-UK free trade agreement, with the aim of facilitating economic relations after Brexit.
• When: Negotiations concluded in the first quarter of 2024, with an agreement signed in Bern on 15 March.
• Where: The official signature took place in the Federal Palace in Bern, involving representatives of the Swiss Economic Forum and the British Ministry of Commerce.
• Who: The Swiss Confederation, represented by the Secretary of State for Economic Affairs, and the United Kingdom, represented by the Minister of International Trade.
• Amount: According to official estimates, the agreement is expected to increase trade in services between the two countries by about CHF 7.9 billion per year by 2025, with positive effects also for the

Operational details

More Switzerland-GB: end of negotiations on updated free trade agreement

The free trade agreement between Switzerland and the United Kingdom, recently updated, represents a significant step in strengthening the bilateral strategic and economic partnership, with particular attention to the challenges and opportunities of the post-Brexit context. The conclusion of the negotiations, which took place at the end of 2023, opens up new prospects for companies and citizens on both sides, consolidating a relationship that has now spanned over 50 years.

Among the most relevant aspects, the agreement aims to facilitate trade by eliminating or drastically reducing tariff and non-tariff barriers. Specifically, the reduction of duties is expected on about 85% of Swiss exports to the United Kingdom, including pharmaceuticals, machinery and high-precision watches, leading sectors for Switzerland. For example, watchmakers in Geneva, with an annual export of around CHF 1.2 billion, will benefit from more favourable tariffs, increasing competitiveness on British markets.

"The agreement represents an important step towards greater commercial autonomy," Federal Councillor Guy Parmelin commented during the signing.

In terms of investment, the UK ranks among Switzerland's main trading partners outside the EU, with total trade amounting to around CHF 14 billion in 2022, and a positive balance for Switzerland of around

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Key points

More Switzerland-GB: end of negotiations on updated free trade agreement

The recent free trade agreement between Switzerland and the UK represents a crucial step in strengthening post-Brexit economic relations. Before it can be implemented, the cartel must receive approval from the parliaments of both countries. Switzerland, with its Federal Parliament, and the United Kingdom, through the Westminster Parliament, must formally ratify the text, thus ensuring compliance with internal regulations and procedures. The shared goal is to finalize the signing by the end of the current year, allowing for a smoother and more predictable transition for businesses in both nations.

The agreement aims to facilitate trade by reducing tariff and regulatory barriers. For example, it allows duty-free access to goods such as pharmaceuticals, precision machinery and food, strategic sectors for many Swiss companies, including Roche and Novartis in Basel, and for British industries in Manchester and Birmingham. Switzerland exports around CHF 10 billion per year to the UK, an increase of 4% compared to 2022, and the agreement is expected to further increase this figure, also favouring SMEs.

"This agreement represents a new phase of economic cooperation between the two countries, strengthening their respective economies in a context of global challenges," said the

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Source: swissinfo.ch