- UK working to negotiate new enhanced free trade agreement
with fellow ‘services superpower’ Switzerland
- Government launches eight-week consultation on new UK-Swiss
FTA to seek views of UK businesses and public and shape
negotiating objectives
- New deal will take our relationship to the next level in
industries of the future such as digital trade and innovative
services
The UK has today (28 April 2022) kickstarted work for a new
enhanced trade deal with Switzerland, after Prime Minister hosted Swiss President
Ignazio Cassis for bilateral talks in London.
The enhanced deal aims to boost two-way trade between two of the
world’s biggest services superpowers through measures including
breaking down barriers and opening up access for U.K. firms to
the Swiss market.
The Department for International Trade is launching an eight-week
consultation calling on businesses and the public for their views
ahead of the start of negotiations.
Switzerland is already an important partner for the UK, with
bilateral trade worth nearly £35 billion annually. Many UK
businesses benefit from tariff free trade on most goods under our
existing trade agreement rolled over from the EU, but the current
deal does not cover services, which account for over half of our
bilateral relationship.
As two services powerhouses globally renowned for their
expertise, both the UK and Switzerland are keen to negotiate an
ambitious, unprecedented free trade agreement that will boost
both our economies and show the world what is possible between
two like-minded and innovative democracies.
International Trade Secretary said:
A new enhanced trade agreement with Switzerland is a huge
opportunity to liberalise trade with our 10th largest trading
partner and unlock new opportunities for our world-leading
services sector.
As two services superpowers, we have a huge opportunity to
negotiate a modern, ambitious, unprecedented deal that will boost
both our economies and show the world what is possible between
two like-minded and innovative nations who are firmly within
Europe but outside of the EU.
In 2020, the United Kingdom was the second-largest exporter of
services to the world, with exports worth £266.8 billion.
Switzerland was 12th largest, with £89.6 billion.
This deal will help take our relationship to the next level in
industries of the future such as digital trade, innovative
services, and green growth - delivering higher-paying jobs across
the country. It will support trade in vital industries of the UK
economy, including finance, legal services, consultancy, the tech
sector, and the creative industries, helping contribute to
setting new rules and standards for digital trade in the 21st
century.
CBI President said:
That DIT is seeking inputs into enhancing the UK-Swiss FTA is to
be welcomed, and the CBI looks forward to responding. The
CBI-driven Joint UK-Swiss Bilateral Trade & Investment
Council launched earlier this year identified significant
opportunities to deepen the existing trading relationship,
primarily by enhancing digital and services trade.
Alongside the ongoing dialogue on Financial Services, this
consultation presents an opportunity to increase cooperation on
issues ranging from customs, reducing complexity in short-term
mobility and building cooperation on innovation through our
world-class research institutions.
Managing Director, International Trade and Investment,
TheCityUK Nicola Watkinson said:
As the first and third largest net exporters of financial and
related professional services globally, the UK and Switzerland
have a great deal to gain by setting a new gold standard for
services trade between two sovereign nations.
In the UK, nearly half of these exports are generated outside
London, in towns and cities right across the UK, so making
progress with this agreement can deliver real benefits to local
jobs and prosperity. In the long term, a free trade deal with
Switzerland will complement wider progress towards mutual
recognition, and can be used as the model for new-generation
trade deals with other partners worldwide.
Background:
*The consultation can be
accessed on the gov.uk website.
