What Trade Agreement Does Switzerland Have with Eu

Switzerland is not a member of the European Union, but it has close trade relations with the bloc. The country has bilateral agreements with the EU, which allow it to participate in the single market and various other initiatives.

The main trade agreement between Switzerland and the EU is the Free Trade Agreement (FTA), which was signed in 1972. The FTA grants Swiss companies access to the EU`s market without having to comply with all of the bloc`s regulations. In return, Switzerland applies many of the same regulations to its own market.

The FTA covers a wide range of goods and services, including agriculture, pharmaceuticals, and financial services. It also includes provisions on intellectual property, competition, and state aid. The agreement is regularly updated to reflect changes in the EU`s regulatory environment.

Another important agreement is the Agreement on the Free Movement of Persons (AFMP), which was signed in 1999. The AFMP allows Swiss and EU citizens to move and work freely across borders. This has been a controversial issue in recent years, as some political parties in Switzerland have called for tighter restrictions on immigration.

Other agreements between Switzerland and the EU cover issues such as transport, research, and environment. These agreements allow Switzerland to participate in various EU initiatives and programs, such as Horizon 2020 (the EU`s research and innovation program) and the European Environment Agency.

Despite the close trade relations between Switzerland and the EU, there have been some challenges in recent years. In 2014, Swiss voters approved an initiative that called for limits on immigration from the EU. This put Switzerland in conflict with the AFMP and other agreements, as the EU insisted that freedom of movement was a cornerstone of the single market.

As a result, negotiations between Switzerland and the EU have been ongoing, with the aim of finding a solution that balances Swiss concerns about immigration with the EU`s desire to maintain the integrity of the single market. These negotiations have been complex and contentious, but both sides have expressed a willingness to find a mutually acceptable solution.

In summary, Switzerland has a range of bilateral agreements with the EU that allow it to participate in the single market and various other initiatives. The FTA and the AFMP are the most important of these agreements, but there are many others that cover a wide range of issues. Despite some challenges in recent years, both sides are committed to maintaining close trade relations in the future.