As the European Union and Switzerland continue to navigate their relationship amidst the ongoing challenges posed by Brexit, negotiations for a new free trade agreement (FTA) have been underway since 2018. The EU-Swiss FTA aims to update and modernize the existing bilateral agreements between the two parties.
The current trade relationship between the EU and Switzerland is governed by a patchwork of agreements, including the 1972 Free Trade Agreement, which covers industrial goods, and a series of sector-specific agreements that cover areas such as agriculture and public procurement. These agreements have been criticized by both sides for being outdated and complex, with both parties agreeing that a new FTA could lead to greater economic benefits for both.
The EU-Swiss FTA has been a long time in the making, with negotiations initially starting in 2014 and then being suspended in 2016 in the wake of the Brexit referendum. However, with the conclusion of the UK`s withdrawal agreement, negotiations resumed in 2018. Despite initial optimism, however, progress has been slow, with issues such as access to EU markets for Swiss service providers and the protection of Swiss wages being hotly debated.
One of the main goals of the EU-Swiss FTA is to simplify and streamline the existing agreements, in order to make it easier for businesses to trade across borders. This would involve the creation of a single overarching agreement that covers all aspects of the trade relationship. In addition, the EU-Swiss FTA aims to address some of the imbalances in the existing agreements, such as the fact that Swiss exporters face higher tariffs than their EU counterparts.
The EU-Swiss FTA has been praised by both EU and Swiss officials as a way to strengthen economic ties between the two parties, as well as to promote the values of free trade and open markets. However, the negotiations have also been criticized by some groups, such as Swiss farmers, who fear that the agreement could lead to increased competition from EU producers.
Overall, the EU-Swiss FTA represents an important step forward in the economic relationship between the EU and Switzerland, but it remains to be seen whether the negotiations will ultimately be successful. With both parties facing a range of economic and political challenges, the road ahead may be rocky, but the potential benefits of a modernized and simplified trade relationship could be significant. As such, the negotiations are being closely watched by businesses and policymakers alike.