This is the original version. It was replaced by this update, now also archived, reflecting changes to the Swiss government’s information sheet on February 11, 2019, when the two countries signed the new agreement.
The latest version is here.
By Peter Ungphakorn
POSTED FEBRUARY 5, 2019 | UPDATED FEBRUARY 5, 2019
What have the UK and Switzerland agreed on their trade relationship post-Brexit? The text(s) is(are) not available publicly but there are interesting insights in a Swiss government information sheet, prepared mainly for Swiss companies, and dealing only with trade in goods, not services.
A key point to make is that this is not exactly “rolling over” to the UK the present Swiss-EU trade relationship. It only looks at two situations: a transition under the Withdrawal Agreement, but not beyond; and the UK’s disorderly exit from the EU if there is no deal.
What is it?
Below is a rough translation of the French version, which is here or available on the Swiss government website here.
The Economic Affairs Ministry’s main pages linking to the information sheets (possibly linking to updated versions), are available in French, German and Italian (you can switch language via links at the top of the pages).
The English page links to the German version.
The information sheet goes through a number of relevant agreements. In each case it looks at “deal” (the UK leaves with the Withdrawal Agreement and transition), and “no deal”. “Deal” only looks at the transition, not beyond.
Agreements covered
Jump to:
- Trade
- Preferential rules of origin
- Customs facilitation and security
- Administrative assistance / international mutual legal Assistance on customs
- Mutual Recognition of conformity assessments (MRA)
- Agriculture
- Veterinary issues
- Government procurement
Economic relations between Switzerland and the United Kingdom after Brexit (as of 14.12.2018)
(Unofficial English translation of the French version)
Swiss-EU Free Trade Agreement
[My summary: Free trade. With an exit deal and transition — no change]
“Deal” scenario
In the event of an “orderly” exit by the United Kingdom from the EU, the Free Trade Agreement (FTA) concluded between Switzerland and the EU1 will continue to apply to the United Kingdom during the transition period, which is likely to last until 2020. Thus, even though it will no longer be a formal EU member, the UK will continue to be considered as such during the transition period from the contractual and customs points of view. For the companies concerned, this means that the Swiss-EU FTA will continue to apply in the same way and without change to trade between Switzerland and the United Kingdom until the end of the transition period.
[Free trade, “no deal” — bilateral rights and obligations preserved; aiming to reproduce in a bilateral agreement]
“No deal” scenario
If the UK and the EU fail to conclude an exit agreement (“no deal”), the Swiss-EU FTA will cease to apply to the UK from the exit date. Switzerland and the United Kingdom have agreed to preserve bilateral rights and obligations under the Swiss-EU FTA after the exit date. In principle, it is planned to reproduce in a bilateral FTA between Switzerland and the United Kingdom the provisions of the Switzerland-EU FTA (including Protocol No. 2 concerning certain processed agricultural products).
For Protocol No. 3 of the FTA (concerning rules of origin), see the information note entitled “Preferential Rules of Origin (Protocol No. 3 to the Switzerland-EU Free Trade Agreement)”.
Preferential rules of origin
(Protocol No. 3 of the Switzerland-EU Free Trade Agreement)2
[Rules of origin. With an exit deal: Regional Convention on pan-Euro-Mediterranean preferential rules of origin (PEM Convention)]
“Deal” scenario
In the event of an “orderly” exit from the UK (providing for a transitional period that is likely to last until 2020), the rules of origin of Protocol 3 will remain in force during the period of transition. For the companies concerned, this means in practice that no change will occur during this period from the date of exit of the United Kingdom. As at present, the rules of origin provided for in the Regional Convention on Pan-Euro-Mediterranean Preferential Rules of Origin (PEM Convention)3 will apply. Possibilities of cumulation will thus be maintained, in particular with inputs originating in the EU, and the establishment of the proof of origin will remain unchanged.
2 RS 0.632.401.3
3 RS 0.946.31
[Rules of origin under “No deal” — applying PEM “as much as possible”. Working to preserve cumulation. Need to ensure goods traded between UK and Switzerland under this do not end up in the EU]
“No deal” scenario
In the event that the UK and the EU fail to reach an agreement (“no deal”), Switzerland and the United Kingdom have agreed to maintain as much as possible the rules of origin of Protocol No 3 bilaterally after the exit date. Provided that the United Kingdom enters into agreements with other parties to the PEM FTA with identical rules of origin, the possibility of cumulation may be maintained even without an exit agreement. Switzerland and the United Kingdom are working to preserve the cumulation of products originating in the EU, even in the case of a “no deal”.
Given that, in the case of a “no deal scenario”, the EU would be considered a third country, the rules on direct shipping should be respected. Swiss companies who place originating goods in distribution depots located in the EU should ensure that these originating goods are not released into the EU if they are to be transported to the United Kingdom thereafter.
Agreement on customs facilitation and security
[Customs facilitation and security. “Deal” — no change]
“Deal” scenario
In the event of an “orderly” exit from the EU by the United Kingdom (with a transition period), the provisions of the agreement between Switzerland and the EU on the facilitation of controls and formalities during transport goods and customs security measures (Customs Facilitation and Security Agreement)4 will continue to apply to relations between Switzerland and the United Kingdom.
Nothing will change for the companies concerned. As at present, Switzerland, the EU, Norway and the United Kingdom will continue to form a common security area, in which prior declarations of goods before they cross the border and security checks are not necessary. Trade in goods between Switzerland and countries not forming part of this common security area will also remain subject to the provisions of the Customs Facilitation and Security Agreement.
[Customs facilitation and security. “No deal” — life gets pretty complicated. UK excluded from security area; checks needed; not known what security measures the UK will implement]
“No deal” scenario
If the UK and the EU fail to reach an exit agreement, Swiss companies will have to expect the following changes:
- Until the United Kingdom and the EU have concluded a similar agreement to the Customs Facilitation and Security Agreement, the United Kingdom will be excluded from the Common Security Area of Switzerland, Norway and the EU, and will be considered as a third country;
- the transportation of goods by land or air from Switzerland to the United Kingdom will, as is the case with shipments to other third countries, be the subject of a prior declaration to the Federal Customs Administration (AFD), in accordance with the provisions of the Agreement on Customs Facilitation and Security. Any security checks will be carried out in Switzerland, before the goods are transported;
- for land transportation of goods from the United Kingdom to Switzerland, the EU will require, as for shipments from other third countries, a prior declaration when goods enter its territory and will carry out any security checks. Since the goods will then already be in the Common Security Space, no further customs security measures will be necessary upon their entry into Switzerland;
- for air transportation of goods from the United Kingdom to Switzerland, the goods must be the subject of a prior declaration to AFD, as is the case with shipments from other third countries, in compliance with the provisions of the Customs Facilitation and Security Agreement. Any security checks will be carried out in Switzerland, after the arrival of the goods. On the other hand, it will no longer be necessary to carry out additional security checks if these goods are subsequently transported to the EU from a Swiss airport;
- It is not yet known whether the United Kingdom will also apply customs security measures when importing and exporting goods. Where appropriate, shipments to the United Kingdom should also be subject to prior declaration before they cross the border.
Administrative Assistance /
International Mutual Legal Assistance in the Customs Field
[Administrative and customs assistance. “Deal” — no change]
“Deal” scenario
In the event of an “orderly” exit from the UK (providing for a transitional period), the following agreements will continue to apply between Switzerland and the United Kingdom:
- the anti-fraud agreement between Switzerland and the EU of 20045;
- the additional protocol between Switzerland and the EU on Mutual Administrative Assistance in Customs Matters6;
- in the area of mutual legal assistance — for cases falling under customs law — the European Convention on Mutual Assistance in Criminal Matters (EuCMACM)7 and the Second Additional Protocol to the EuCMACM 8.
This means in practice that no change is expected for the administration, individuals or companies in administrative assistance and international mutual legal assistance.
5 RS 0.351.926.81
6 RS 0.632.401.02
7 RS 0.351.1
8 RS 0.351.12
[Administrative and customs assistance. “No deal” — should be no change]
“No deal” scenario
In the event that the UK and the EU fail to reach an exit agreement, Switzerland and the United Kingdom have agreed on how to preserve bilateral reciprocal rights and obligations in the area of administrative assistance and mutual legal assistance after the exit date. The above-mentioned agreements and conventions would then continue to apply as before. This means concretely — subject to the entry into force of such a bilateral agreement — that no change is expected for the administration, individuals or companies in the field of administrative assistance and international mutual legal assistance.
Agreement on Mutual Recognition
of Conformity Assessments (MRA)
[Mutual recognition of conformity assessments. “Deal” — no change expected]
“Deal” scenario
In the event of an “orderly” exit from the UK (with a transition period), the provisions of the agreement between Switzerland and the EU on mutual recognition of conformity assessments (MRA)9 will continue to apply to trade in industrial products between Switzerland and the United Kingdom. As now, producers will be able to distribute their industrial products in Switzerland and the United Kingdom in the 20 product sectors covered by the MRA on the basis of a single conformity assessment (conducted in Switzerland, the EU or the United Kingdom). Economic actors will thus remain exempt from the obligations provided for by the MRA. No change is therefore expected for the companies concerned or for the conformity assessment bodies.
[Mutual recognition of conformity assessments. “No deal” — They continue in some sectors; others need bilateral agreement; suggests basing on Swiss-Canada agreement]
“No deal” scenario
If the United Kingdom and the EU fail to reach an exit agreement, the Swiss-EU MRA will no longer apply to bilateral trade between Switzerland and the United Kingdom from the date of exit.
In this case, Switzerland and the United Kingdom have agreed criteria for transposing the MRA to the bilateral level and necessary adaptations to this effect. The MRA will continue to be applicable in relations with the United Kingdom for “motor vehicle products”, “good laboratory practices”, and “GMP inspection and batch certification “sectors. For other sectors, the conclusion of a “traditional” MRA is a priority to avoid double conformity assessments. The importing country then undertakes to recognize the conformity assessments carried out in the exporting country when the product has been manufactured in accordance with the requirements of the importing country and the conformity assessment has been carried out by an organization in the exporting country, recognized by the agreement. The MRA between Switzerland and Canada is based on this approach.
Agriculture Agreement
[Agriculture. “Deal” — no change. “No deal” — pretty complex. The information sheet starts as below, and then continues with various annexes]
“Deal” scenario
In the event of an “orderly” exit from the EU by the UK (with a transition period), the agriculture agreement10 between Switzerland and the EU will continue to apply in the UK during the transitional period. During the transition period, the [UK] will thus be considered as an EU member country from the contractual and customs points of view. For the companies concerned, this means that the Swiss-EU agricultural agreement will continue to apply in the same way and without change to trade between Switzerland and the United Kingdom until the end of the transitional period.
10 RS 916.026.81
“No deal” scenario
If the United Kingdom and the EU fail to reach an exit agreement, the Switzerland-EU agricultural agreement will cease to apply to the United Kingdom from the date of exit. Switzerland and the United Kingdom have agreed on the best way to preserve, in a bilateral agricultural agreement, the reciprocal rights and obligations provided for in the Swiss-EU agricultural agreement.
The absence of an exit agreement would have the following consequences for the different areas (annexes) of the agricultural agreement.
[Annexes 1 to 3, 7, 8, 10 and 12 (tariff quotas, cheese, geographical indications, wines & spirits, fruit and veg, etc) — Switzerland and UK have agreed on bilateral solutions based on the Swiss-EU agricultural agreement]
Annexes 1 to 3, 7, 8, 10 and 12 of the Agriculture Agreement
In the areas covered by the agricultural agreement between Switzerland and the EU that are not based on legal harmonization or recognition of equivalence of regulations between Switzerland and the EU (tariff quotas, free trade in cheese, geographical indications, wines and spirits, and marketing standards for fresh fruit and vegetables), Switzerland and the United Kingdom have agreed on bilateral solutions based on the Swiss-EU agricultural agreement.
The rules of origin applicable to Annexes 1-3 of the Agricultural Agreement refer to Protocol No. 3 to the Free Trade Agreement; cf. information note entitled “Preferential Rules of Origin (Protocol No. 3 to the Switzerland-EU Free Trade Agreement)”.
[Annexes 4 to 6 and 9 (non-tariff issues) — Not status quo; checks for many products; UK “organic” label no longer recognised in Switzerland]
Annexes 4 to 6 and 9 of the Agriculture Agreement
Due to the legal harmonization or the recognition of the equivalence of the legal provisions between Switzerland and the EU in the non-tariff areas regulated by these annexes (phytosanitary products, fodder, seeds, agricultural and food products derived from ecological production), the status quo cannot be maintained under “no deal”. For businesses and individuals this means that import of fodder from the UK will only be possible if the applicable regulations in Switzerland are followed. Only fodder marketable in Switzerland can be imported. The same will apply to seeds. Plants and plant products listed in Annex 5, Part B of the Plant Protection Ordinance11 will again be required to have a phytosanitary certificate submitted, which presupposes a prior declaration to the Federal Plant Protection Service. and phytosanitary control when products enter Switzerland. For import consignments arriving in Switzerland by land, these checks may be carried out at the point of entry into the Switzerland-EU Common Plant Health Area (France, Belgium, the Netherlands, eg depending on the route taken and the means of transport used), as is the case for goods coming from other third countries. For organic products, in the absence of a bilateral agreement between Switzerland and the United Kingdom, products certified as “organic” in the United Kingdom will no longer be recognized as such in Switzerland.
11 RS 916.20
Agricultural Agreement Annex 11
(“Veterinary Agreement”)
[Veterinary agreement. “Deal” — no change]
“Deal” scenario
In the event of an “orderly” exit from the UK (with a transition period), this country will continue to be an integral part of the veterinary area to which Switzerland belongs under the veterinary annex of the agricultural agreement12. As a result, there will be no change in the veterinary relationship between Switzerland and the United Kingdom. For the companies and individuals concerned, this means that the Swiss-EU Veterinary Agreement will continue to apply in the same way and without change to trade between Switzerland and the United Kingdom until the expiry of the transition period.
[“No deal” — the UK will no longer be in the veterinary area. There will be some interruptions, how long depends “solely on the EU”. Once the UK is recognised as a 3rd country, trade can resume]
“No deal” scenario
If the UK and the EU fail to reach an exit agreement, the UK will no longer be part of this area and will have the status of a third country. The term “third country” refers to all States except the EU Member States, Iceland and Norway. In this case, the import of animals and animal products from third countries into Switzerland will only be possible under specific conditions.
It cannot be ruled out that at the time of the exit of the UK from the EU, the trade of animals and animal products from the United Kingdom to Switzerland (and the whole veterinary area) is interrupted until the UK is listed by the EU on the list of third countries. The duration of this possible interruption will depend solely on the EU.
Under the agricultural agreement, Switzerland is taking over the EU lists. Therefore, as soon as the United Kingdom has been recognized by the EU as a third country, the export of animals and animal products to the EU and Switzerland will be possible again. However, animals and products of animal origin will then be subject to EU import regulations applicable to third countries. Existing legislation on the import, transit and export of animals and animal products to third countries is available on the website of the Federal Office for Food Safety and Veterinary Affairs (FSVO).
Agreement on Government Procurement
[Government procurement. “Deal” — No change because governed by the WTO agreement and Swiss-EU agreement]
“Deal” scenario
In the case of an “orderly” exit from the EU by the United Kingdom (with a transitional period) and the UK’s continued participation in the WTO Plurilateral Agreement on Government Procurement (GPA), public procurement relations between Switzerland and the United Kingdom would continue to be governed by the GPA and the bilateral agreement on public procurement between Switzerland and the EU13, which will apply to the United Kingdom during the transition period. Nothing would change for the bidders and contracting authorities concerned.
[Government procurement. “Single no deal” — only the WTO agreement applies, blocks bidding for local authority and railways contracts subject to equal treatment given. But wait …]
“No deal” scenario
If the UK and the EU fail to reach an exit agreement, the public procurement relationship between Switzerland and the United Kingdom will be governed solely by the GPA (provided that the United Kingdom accedes to it at the time it leaves the EU). The bilateral agreement on Switzerland-EU public procurement will no longer be applicable between Switzerland and the United Kingdom.
For the companies concerned, this means in practice that Swiss bidders will in principle no longer be able to participate in calls for tender published by the local authorities or railway companies in the United Kingdom. In contrast, the relevant Swiss tenderers (eg municipalities or the Swiss railway, SBB) will no longer have to open their tenders to UK tenderers, subject to equal treatment for Swiss bidders in the United Kingdom.
[Government procurement. “Double no deal” — the UK fails to accede to the WTO agreement as well: no contractual obligations at all, but the UK and Switzerland intend to negotiate an agreement.]
“Double no deal” scenario
If there is “no deal” between the UK and the EU and the UK has not acceded to the GPA by the time it leaves the EU, there will no longer be any contractual basis governing public procurement relations between Switzerland and the United Kingdom. For the companies concerned, this means in practice that Swiss bidders will in principle no longer be eligible to participate in tenders published in the United Kingdom, unless the United Kingdom decides otherwise. Conversely, the relevant Swiss authorities will no longer be obliged to open their tenders to bidders from the United Kingdom, subject to equal treatment by the Swiss tenderers.
Switzerland and the United Kingdom have agreed to preserve bilaterally the reciprocal rights and obligations provided for in the bilateral agreement on Switzerland-EU public procurement after the exit date. In general, the provisions of the current Swiss-EU FTA and the GPA will be included in a bilateral FTA between Switzerland and the United Kingdom.
Originally a Twitter thread here:
Updates: None so far
Photocredits:
• Swiss Parliament and government buildings, Bern; Switzerland-France border at Bardonnex near Geneva | Peter Ungphakorn CC BY-SA 4.0
• Custom House, Lower Thames Street, London: long-time home of HM Customs | Dhowes9 CC BY-SA 3.0
• All other photos CC0
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