- UK and Switzerland agree three-year extension to the Services
Mobility Agreement (SMA), enabling UK professionals to work in
Switzerland for up to 90 days a year permit free
- Extension welcomed by UK services industry, which accounts
for around 80% of the UK’s GDP and workforce
- News comes ahead of negotiations on an ambitious new trade
deal between the two services superpowers in 2023
Following intensive discussions, the UK and Switzerland have
today agreed to extend the Services Mobility Agreement. The deal,
which has been in operation since the start of 2021, has had a
transformative effect on companies’ ability to provide services
in each other’s countries by allowing employees to easily work in
both states.
The extension of the agreement means UK professionals – from
accountants and lawyers to advertising creatives – can continue
to travel and operate freely in Switzerland for up to 90 days a
year without needing a permit.
Switzerland is the UK’s sixth largest export market for services,
worth over £12 billion in exports last year. ‘Other business
services’, including accountancy, architectural, and legal
services made up the majority of these, worth £6.5 billion, while
financial services accounted for £1.9 billion.
The SMA will be rolled over for a further three years, providing
UK and Swiss companies with welcome certainty. Moving skilled
people between countries is vital to services exports,
facilitating the delivery of projects and face to face
conversations that help to win new clients and get deals
done.
The two countries have also agreed to launch negotiations next
year on a new free trade agreement, which will establish
long-term arrangements for services mobility and boost trade
between the UK and Switzerland even further, in 2023.
Trade Secretary, , said:
“The UK and Swiss economies are both services powerhouses and
closely aligned. Today’s agreement is a win-win for both sides.
From financial services in Edinburgh to cyber security in Wales,
the deal ensures UK businesses capitalise on the huge
opportunities on offer.
“This is just the beginning. I am excited to launch negotiations
on an ambitious, future-facing trade deal with Switzerland that
will boost our already incredibly strong trading relationship,
worth £39 billion last year.”
Switzerland is a world leader in innovation and has placed top of
the Global Innovation Index for twelve consecutive years. It
offers huge opportunities for companies across the UK, who
already export billions in services there every year. Scotland,
home to Edinburgh’s thriving financial services scene, exported
over £700 million in services to Switzerland in 2020 while Wales,
with its cyber security hub, exported £175 million.
Rain Newton-Smith, Chief Economist at the
Confederation of British Industry said:
“Businesses across the UK will welcome today’s extension of the
Services Mobility Agreement, as called for by the Trade in
Services Council. With four in five UK jobs located in the
services sector, the ability to work in Switzerland is hugely
beneficial for firms trading with the UK's 7th largest
export market. Business will hope this injects crucial momentum
as the UK and Switzerland prepare to negotiate an enhanced
FTA.
“The CBI’s co-chairing of the UK-Switzerland Bilateral Trade and
Investment Council will provide an important forum for firms to
discuss ways to further unlock new and exciting trade
opportunities with Switzerland.”
Policy Chairman of the City of London Corporation,
Chris Hayward, said:
“The extension of the Service Mobility Agreement is hugely
welcome. Access to the world’s best talent, and a capacity to
move highly skilled labour between the UK and Switzerland is of
paramount importance to the financial and professional service
sector.
“The UK and Switzerland are the two largest financial centres in
Europe which means strengthening our services trade relationship
is a top priority for the sector. Looking ahead, we hope to see
the mobility agreement expanded, incorporated and future proofed
within a comprehensive Free Trade Agreement.”
