Site navigation
Website content
Countries
Switzerland
Switzerland's main trading partner is the EU. On the other hand, Switzerland is currently the fourth largest trading partner of the EU. Trade figures in 2008 show €80 billion in imports and €97.6 billion in exports. In terms of imports, Switzerland was the EU's 5th most important trading partner in 2008, after the US, China, Russia and Norway. Regarding exports, Switzerland was the 3rd after the US and Russia in the same period.
No other country has as many bilateral agreements with the EU in place
Trade in goods
Swiss merchandise exports are concentrated on a few sectors, particularly chemicals and medicinal products, machinery, instruments and of course watches. Switzerland represents 5.2% of EU's total imports.
Trade in services
Switzerland is a very important partner of the EU for trade in services, in particular commercial services are considerable. In 2008 the EU's export totalled €67.0 billion, imports from Switzerland €47.2 billion. The balance between Switzerland and the EU was in favour of the latter.
Foreign Direct Investment
Developed countries are the main partners for FDI in Switzerland, but the outflow towards Central and Eastern European countries has recently increased. The United States is the main investor as well as the main destination, in terms of FDI stock. Inward stock is more concentrated, with only three investors accounting for almost 70% (US, the Netherlands, Germany). The most important destinations of Swiss FDI are the US, UK and Germany.
Miscellaneous
The Swiss economy is highly internationally integrated, capitalising on an open trade regime for industrial products but with a protected agricultural sector. Tariffs on manufactures are generally low, and in principle there are no quantitative restrictions, anti-dumping, countervailing or safeguard actions. However, in a number of sectors, the market entry has long suffered from "private" or "informal" barriers, which can be attributed to a legacy of weak anti-cartel legislation, specific and protective technical regulations, certain investment restrictions, and exclusive rights under intellectual property legislation.
Bilateral agreements
To reconcile the wish for Swiss integration into the EU with the reluctance of the Swiss people to share sovereignty rights, the bilateral relations between the two parties have been intensified during the years without achieving full membership. On a technical level, circa 100 bilateral agreements are currently managed through a structure of more than 15 joint committees.
While the first Agreement dates back to the early days of the European Coal and Steel Community (1956), it is the Free Trade Agreement of 1972 that has a particular relevance.
During the late 1980s and early 90s, Switzerland participated in the negotiations of the Agreement on the European Economic Area. On 2 May 1992, Switzerland signed the EEA Agreement. A few days later, on 20 May 1992, the Swiss Government applied for accession to the EC.
In a referendum held on the 6th December 1992, the Swiss people rejected the ratification of the EEA agreement. As a consequence, the Swiss Government decided to suspend negotiations for EU accession until further notice, but its application remains open.
In order to minimise the negative consequences of the rejection of the EEA agreement, negotiations for agreements in seven sectors (Free Movement of Persons, Trade in Agricultural Products, Public Procurement, Conformity Assessments, Air Transport, Transport by Road and Rail, Swiss Participation in the 5th Framework Programme for Research) began in 1994 (so-called Bilateral I package). Negotiations were concluded and the agreements were signed on 21 June 1999 and ratified in early 2002. They entered into force on 1st June 2002. These agreements are linked by a termination clause, which means that all the agreements came into force together and will also come to an end together if any one of them is terminated. The on-going implementation of these agreements obliges Switzerland to take over relevant Community legislation in the covered sectors.
A second round of bilateral negotiations (so-called Bilateral II package) concerned the association of Switzerland to the Schengen acquis, the participation in the Dublin Convention, the European Environment Agency and the European Environment Information and Observation Network, the Media Programme, a statistical co-operation, a Swiss contribution to combat tax fraud and the taxation of savings and measures to avoid double taxation of EU civil servants. Initially services should be part of these negotiations. However, due to problems of Switzerland to adopt fundamental aspects of the acquis communautaire this subject was withdrawn from the negotiations on Swiss request. The agreements of the Bilateral II package were signed in October 2004.
Switzerland also participates in the 6th Framework Programme for Research and Development.
WTO/DDA issues
In WTO Switzerland is member of the G10 group. Switzerland has always been actively supportive in industrial market access, services, Geographical Indications and is decidedly committed to the multilateral trade liberalisation.
Free Trade Agreement policy
Being member of EFTA, Swiss FTAs are usually concluded in the EFTA framework.
However from September 2005 to January 2006 Switzerland had exploratory talks with the US on a bilateral FTA. These talks could not lead to an official launch of negotiations. Instead a "Trade and Investment Cooperation Forum" was installed.
Future prospects
Switzerland is coming continuously closer to the rest of Europe. While the integration process within the European Union continues to progress, Switzerland adopts many of its regulations, laws and norms.
Bilateral relations
Trade relations with key trading partners
Facts, figures, latest developments and archives.
Other countries: