Federal Department of Foreign Affairs FDFA
Directorate for European Affairs DEA
The major bilateral
agreements Switzerland–EU
September 2016
B. I
B. II
Bilateral agreements Switzerland–EU
Swiss policy on the EU: The bilateral agreements, September 2016
© Directorate for European Affairs DEA
2
The first bilateral agreements
1972 Free trade of industrial products
Abolition of obstacles to trade (duties, quotas)
for industrial products
1989 Insurance
Equal rights of establishment for insurance
companies (excluding life insurances)
1990 (completely revised, 2009)
Customs facilitation and security
Regulation of controls and formalities in goods
transport (24-hour rule)
 Relevance: Mutual market access
Swiss policy on the EU: The bilateral agreements, September 2016
© Directorate for European Affairs DEA
3
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 2015, 54% of Swiss exports (c. CHF 109bn)
went to the EU-area. Vice versa, 72% of Swiss imports (c. CHF 121bn) came
from the EU.
Entry into force: 1973
Source: Swiss Customs Administration FCA
Swiss policy on the EU: The bilateral agreements, September 2016
© Directorate for European Affairs DEA
4
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 2014, the Swiss insurance sector
provided jobs for 47,832 people in Switzerland and 69,236 abroad.
Entry into force: 1993
Source: Swiss Insurance Association SIA
Swiss policy on the EU: The bilateral agreements, September 2016
© Directorate for European Affairs DEA
5
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
Everyday 20,000 trucks cross Switzerland’s borders.
Entry into force: 1991; amended agreement 2011
Source: Swiss Customs Administration FCA
Swiss policy on the EU: The bilateral agreements, September 2016
© Directorate for European Affairs DEA
6
Bilaterals I (1999)
1.
2.
3.
4.
5.
6.
7.
Free movement of persons
Technical obstacles to trade
Public procurement market
Agriculture
Research
Civil aviation
Overland transport
 Relevance: Easier access to
labour, goods and service markets
© Flughafen Zürich AG
© Swiss PDO-PGI Association
Swiss policy on the EU: The bilateral agreements, September 2016
© Directorate for European Affairs DEA
7
Free movement of persons
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
Entry into force: 2002
Swiss policy on the EU: The bilateral agreements, September 2016
© Directorate for European Affairs DEA
8
Initiative «Stop mass immigration»
• Adoption on 9 February 2014 with 50.3% of the votes and the
majority of the cantons
• Core elements according to the new Art. 121a Cst
1. Switzerland autonomously regulates immigration.
2. a) Restriction of residence permits through annual quantitative limits
and quotas
b) The right to permanent residence, family reunification and social
benefits may be limited.
3. a) Quantitative limits and quotas must be geared towards
Switzerland's overall economic interests.
b) Businesses must give Swiss nationals priority when hiring staff.
4. No treaties of international public law that infringe the article
5. Details to be defined at the legislative level
Swiss policy on the EU: The bilateral agreements, September 2016
© Directorate for European Affairs DEA
9
Finding a solution on the free movement
of persons
• The new article of the Swiss Federal Constitution on immigration, Article
121a, is not compatible with the Agreement on the Free Movement of
Persons (AFMP).
• The AFMP must be renegotiated within three years in order to adapt to
the new Swiss immigration system.
• If within three years there is no implementation at legislative level,
the Federal Council will have to implement the new provisions on
immigration as per ordinance.
Swiss policy on the EU: The bilateral agreements, September 2016
© Directorate for European Affairs DEA
10
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.
Entry into force: 2002
Swiss policy on the EU: The bilateral agreements, September 2016
© Directorate for European Affairs DEA
11
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
Entry into force: 2002
Swiss policy on the EU: The bilateral agreements, September 2016
© Directorate for European Affairs DEA
12
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 (2014:
60% of CH-exports went to the EU, 74% of CH-imports came from the EU).
• Creates export growth: cheese export +2.8% per year between 2004–2014
Entry into force: 2002; 2011 the Agreement on mutual recognition of
Protected Designations of Origin (PDO) and Protected Geographical
Indications (PGI) entered into force.
Swiss policy on the EU: The bilateral agreements, September 2016
© Directorate for European Affairs DEA
13
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
• Negotiations on full association of Switzerland after 9.2.2014 suspended by
the European Commission.
• On 7.3.2014, the Federal Council agreed to a temporary solution for 2014.
• On 5.12.2014, Switzerland and the EU signed an agreement on the partial
association of Switzerland on Horizon 2020 (entry into force on 8.10.2015).
Swiss policy on the EU: The bilateral agreements, September 2016
© Directorate for European Affairs DEA
14
Civil aviation
Content
• Mutual access to aviation markets for airlines
• Swiss airlines enjoy nearly the same competitive conditions as their
EU 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
Entry into force: 2002; Since November 2011: negotiations on domestic
flights by foreign airlines (8th and 9th Freedom)
Swiss policy on the EU: The bilateral agreements, September 2016
© Directorate for European Affairs DEA
15
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
• 2015: 69.1% of goods traffic crossing the Alps by rail
• Revenue from the heavy vehicle tax is used to improve
the railways (2015: CHF 1.457bn).
Entry into force: 2002; Transit Agreement: 1992
Swiss policy on the EU: The bilateral agreements, September 2016
© Directorate for European Affairs DEA
16
Bilaterals II (2004)
1.
2.
3.
4.
5.
6.
7.
8.
9.
Schengen/Dublin
Taxation of savings
Fight against fraud
Processed agricultural products
MEDIA
Environment
Statistics
Pensions
Education, vocational training, youth
 Relevance: Enhanced cooperation in other
areas, improved economic environment
Swiss policy on the EU: The bilateral agreements, September 2016
© Directorate for European Affairs DEA
17
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
Entry into force operationally: 12.12.2008;
end of controls at Swiss airports for flights within the
Schengen Area: 29 March 2009
Swiss policy on the EU: The bilateral agreements, September 2016
© Directorate for European Affairs DEA
18
Schengen Area
States of the Schengen Area
Non Schengen Member States
with special status
Schengen Member State
with special status
Future Member States
Associated States
Swiss policy on the EU: The bilateral agreements, September 2016
© Directorate for European Affairs DEA
19
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
Entry into force operationally: 12 December 2008
(as with Schengen)
Swiss policy on the EU: The bilateral agreements, September 2016
© Directorate for European Affairs DEA
20
Taxation of savings income
Content
• Allows for cross-border taxation of savings income of individuals with tax
residence in the EU
• Since July 2011, the withholding tax is 35% (of this, 75% goes to the EU
states and 25% to Switzerland). It can be replaced by voluntary notification
of the interest payment to the tax authorities of the country of residence.
• Binds the parties to provide administrative assistance on request
• The parties refrain from taxation on dividends or license-fee payments
between associated companies.
Relevance
Tax contribution in 2014: CHF 317m, of which CHF 237,8m
to EU states and CHF 79,2m to Switzerland
Entry into force: 2005, negotiations: revision/AEOI
Swiss policy on the EU: The bilateral agreements, September 2016
© Directorate for European Affairs DEA
21
Automatic exchange of information (AEOI)
• Cross-border tax evasion should be prevented with the help of the new
global standard by the OECD for the automatic exchange of information
(AEOI).
• 27 May 2015: Signing of the AEOI agreement (not yet ratified)
• 25 November 2015: The Federal Council adopts the dispatch on the AEOI
agreement for approval to Parliament.
• The agreement replaces the taxation of savings agreement with the EU in
force since 2005 and applies to all 28 EU member states.
• Switzerland and the EU-28 intend to collect account data as from 2017
and exchange it as from 2018.
Swiss policy on the EU: The bilateral agreements, September 2016
© Directorate for European Affairs DEA
22
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.
Entry into force: Has 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.
Swiss policy on the EU: The bilateral agreements, September 2016
© Directorate for European Affairs DEA
23
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 37,000 jobs 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 6,5bn in 2015.
Entry into force: 30 March 2005
Swiss policy on the EU: The bilateral agreements, September 2016
© Directorate for European Affairs DEA
24
MEDIA
Content
Participation of Switzerland in the EU's film funding programme «MEDIA
2014-2020» as part of the EU framework programme «Creative Europe»
Relevance
Funding contributions to Swiss film industry, better opportunities for Swiss films
in and outside of Europe, greater variety of films on offer in Switzerland
State of negotiations
• The Federal Council has adopted a negotiating mandate on 19.9.2013.
That of the EU is still pending.
• The informal talks were suspended by the European
Commission after 2.9.2014 and resumed after 30.4.2014.
• On 7.3.2014, the Federal Council has agreed to a
temporary solution for 2014.
Swiss policy on the EU: The bilateral agreements, September 2016
© Directorate for European Affairs DEA
25
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
Entry into force: 1 April 2006
Swiss policy on the EU: The bilateral agreements, September 2016
© Directorate for European Affairs DEA
26
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.
Entry into force: 1 January 2007
Swiss policy on the EU: The bilateral agreements, September 2016
© Directorate for European Affairs DEA
27
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.
Entry into force: 31 May 2005
Swiss policy on the EU: The bilateral agreements, September 2016
© Directorate for European Affairs DEA
28
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.
• Around 6,000 students participated in the exchange programmes CH-EU
per year (about half each way CH→EU / EU→CH).
State of negotiations
• Negotiations were suspended by the European Commission after 9.2.2014.
• On 16.4.2014, the Federal Council adopted a temporary solution for 2014
which he decided to extend for two more years on 19.9.2014.
Swiss policy on the EU: The bilateral agreements, September 2016
© Directorate for European Affairs DEA
29
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 500 operative notifications per month.
Entry into force: 1 March 2006;
enlargement of area of application: 1 January 2008
Swiss policy on the EU: The bilateral agreements, September 2016
© Directorate for European Affairs DEA
30
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 (2014: 1804, +14.5% compared to 2013).
Entry into force: 22 July 2011
© Eurojust
Swiss policy on the EU: The bilateral agreements, September 2016
© Directorate for European Affairs DEA
31
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, procurement
and maintenance of armaments.
• Switzerland remains free to decide on its own what information it wants
to 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.
Entry into force: 16 March 2012
Swiss policy on the EU: The bilateral agreements, September 2016
© Directorate for European Affairs DEA
32
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.
Entry into force: 1 December 2014
Swiss policy on the EU: The bilateral agreements, September 2016
© Directorate for European Affairs DEA
33
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.
Date of signing: 18 December 2013,
provisional implementation since 1 January 2014
Swiss policy on the EU: The bilateral agreements, September 2016
© Directorate for European Affairs DEA
34
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 efficient
and fair asylum system within the participating states
• Use of expertise of other Schengen states
Entry into force: 1 March 2016
Swiss policy on the EU: The bilateral agreements, September 2016
© Directorate for European Affairs DEA
35
Further information
• Switzerland’s European policy
www.fdfa.admin.ch/europe_en
• Publications
www.fdfa.admin.ch/europe/publication
• Free movement of persons
www.personenfreizuegigkeit.admin.ch (German)
Swiss policy on the EU: The bilateral agreements, September 2016
© Directorate for European Affairs DEA
36