Development of relations between Switzerland
and the EU
June 2016
From the outset, the European Union (EU) has been developing to become Switzerland’s most important partner. Today Switzerland conducts its relations with the EU on the basis of sectoral agreements.
This bilateral approach has its origins in the Free Trade Agreement of 1972. It was further developed
following the rejection of Switzerland’s accession to the European Economic Area (EEA) by the Swiss
electorate and the cantons in 1992 by two crucial packages of accords: Bilateral Agreements I and II.
Switzerland and the EU have by now concluded around 20 core and over 100 additional bilateral
agreements.
Chronology
• 2014 adoption of the popular initiative «against mass immigration»
• 2004 Bilateral Agreements II (Schengen, Dublin, taxation of savings, fight against fraud, processed
agricultural products, environment, statistics, MEDIA, pensions)
• 1999 Bilateral Agreements I (free movement of persons, technical barriers to trade, public procure-
ment, agriculture, overland transport, civil aviation, research)
• 1992 rejection of EEA accession by the Swiss electorate and the cantons
• 1972 Free Trade Agreement EFTA-EU
State of affairs
The Council of the European Union described the
relations between Switzerland and EU as close and
intensive in its 2012 conclusions on relations
between the EU and EFTA countries. It noted, however, that the system of bilateral agreements in effect
to that point had reached its limits and that cooperation between Switzerland and the EU was in need
of a new institutional framework. On 18 December
2013, the Federal Council adopted a negotiating
mandate concerning institutional issues. The EU
Council of Ministers has adopted a negotiating mandate on 6 May 2014. The negotiations started on 22
May 2014. Once concluded, the agreement will be
submitted to Parliament for approval and the electorate in the event of a referendum.
On 9 February 2014, the majority of the cantons and
50.3% of the electorate voted in favour of the initiative «against mass immigration». The new constitutional provisions require immigration to be capped
and limited by quotas. The Federal Council has three
years to implement the initiative. The Free Movement of Persons Agreement (FMA) and all other
bilateral agreements remain in force until then.
To implement the initiative against mass immigration, the Federal Council seeks a mutually agreed
solution with the EU. Since it has not yet been possible to reach an agreement with the EU, however,
the Federal Council submitted to Parliament a draft
legislation on 4 March 2016, in which it proposes a
unilateral safeguard clause to control immigration of
people from EU and EFTA member states.
Context
After the Second World War, the EU’s predecessors
created an economic community designed to ensure
lasting peace in Europe. During the post-war period,
Switzerland too focused on closer European economic cooperation in its foreign policy. In 1948 it
joined with other countries to launch the Organisation for Economic Cooperation and Development
(OECD). Alongside the Marshall Plan, the OECD was
intended to help rebuild the economy and cooperation in Europe.
On 4 January 1960, Switzerland together with six
other European countries established the European
Free Trade Association (EFTA) in Stockholm as a counterbalance to the EU. The EFTA states undertook to
remove customs duties on industrial products in trade
among its members. Several of the EFTA states subsequently joined the EU, which soon became Switzerland’s most important trading partner by far. This
made it increasingly important for Switzerland to
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expand and secure its economic relations by treaty.
In 1972 a free trade agreement on industrial goods
was concluded to abolish customs duties on such
products. This agreement is still an important basis
for trade relations between Switzerland and the EU
today.
The bilateral path
When the EU launched its project to complete the
European internal market in 1985, Switzerland
embarked on intensive discussions to decide its
future role and position in Europe. In 1989, the EU
proposed the concept of a European Economic Area
(EEA) to give the EFTA countries that did not wish to
join the EU extensive access to the European internal
market. This was deemed a viable alternative in Switzerland to political affiliation through accession to
the EU. The Swiss government signed the EEA agreement in May 1992 and simultaneously lodged a
request in Brussels to begin negotiations for membership of the EU. Nevertheless, on 6 December
1992, 50.3% of the electorate and 18 of the 26 cantons rejected EEA membership.
Subsequently, Switzerland adopted a bilateral
approach to its relations with the EU based on sectoral agreements. First, on 1 June 1999, the seven
agreements that make up the Bilateral Agreements I
package were concluded and approved by 67.2% of
the Swiss electorate in a popular vote on 21 May
2000. In June 2001 Switzerland and the EU agreed
to launch a second round of bilateral negotiations.
These resulted in eight further agreements, which
formed the Bilaterals II package covering various
policy areas in addition to the predominantly traditional market liberalisation agreements contained in
the first set of agreements. The second set of bilateral
agreements was signed on 26 October 2004. Switzerland and the EU have by now concluded around
20 core and over 100 additional bilateral agreements.
Further information
Directorate for European Affairs DEA
Tel. +41 58 462 22 22, europa@eda.admin.ch,
www.fdfa.admin.ch/europe_en
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