The major bilateral agreements Switzerland-EU - June 2015 - Directorate for European Affairs DEA
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Federal Department of Foreign Affairs FDFA
Directorate for European Affairs DEA
The major bilateral
agreements Switzerland-EU
June 2015
B. II
B. I Bilateral agreements Switzerland-EU
Swiss policy on the EU: The bilateral agreements, June 2015 2
© Directorate for European Affairs DEA
The first bilateral agreements
1972 Free trade of industrial products
Abolition of obstacles to trade for
industrial products (duties, contingents)
1989 Insurance
Equal rights of establishment for
insurance companies
(excluding life insurances)
1990 (completely revised, 2009)
Customs facilitation and security
Regulation of controls and formalities
in goods transport (24-hour rule)
Relevance Mutual market access
Swiss policy on the EU: The bilateral agreements, June 2015 3
© Directorate for European Affairs DEA
Free trade
Content:
• Establishes a Switzerland-EU free trade zone for exclusively industrial
products.
• Prohibits customs duty and similar measures for industrial goods originating
in the territories of the two contracting parties as well as quantitative trade
restrictions (quotas).
Relevance:
Crucial for the Swiss economy: In 2014, 55% of Swiss exports (c. CHF
114bn) went to the EU-area. Vice versa, 73% of Swiss imports (c. CHF
131bn) came from the EU.
Entry into force: 1973
Source: Swiss Customs Administration FCA
Swiss policy on the EU: The bilateral agreements, June 2015 4
© Directorate for European Affairs DEA
Insurance
Content:
Grants mutual and equal freedom of establishment to companies in the
field of direct insurance for damage (household, motor vehicle, travel and
liability insurance, etc.).
Relevance:
• Crucial for internationally operating insurance companies.
• Important for the Swiss economy: in 201, the Swiss insurance sector
provided jobs for 47,832 people in Switzerland and 69,236 abroad.
Entry into force: 1993
Source: Swiss Insurance Association SIA
Swiss policy on the EU: The bilateral agreements, June 2015 5
© Directorate for European Affairs DEA
Customs facilitation and security
Content:
• The agreement of 1990 regulates the controls and formalities for goods
transport between Switzerland and the EU.
• Aims: simplification of customs clearance of goods and improvement of
the cooperation at the borders points.
• New Agreement 2009: precludes the obligation to notify goods traffic in
advance (24-hour-rule) and governs the modalities of further cooperation
in the area of security.
Relevance:
Everyday 20,000 trucks cross Switzerland’s
borders.
Entry into force: 1991; new agreement 2011
Source: Swiss Customs Administration FCA
Swiss policy on the EU: The bilateral agreements, June 2015 6
© Directorate for European Affairs DEA
Bilaterals I (1999)
1. Free movement of persons
2. Technical obstacles to trade
3. Public procurement market
4. Agriculture
5. Research
6. Civil aviation
7. Overland transport
Relevance Easier access to labour,
goods and service markets
Swiss policy on the EU: The bilateral agreements, June 2015 7
© Directorate for European Affairs DEA
Free movement of persons Content: • Entitles Swiss and EU citizens under certain conditions to choose their workplace and residence freely within the territories of the Contracting Parties. • Leads to mutual, gradual and controlled opening up of labour markets through transitional arrangements. • «Accompanying measures» to protect employees (ensuring compliance with pay and working conditions in Switzerland) Relevance: • Important growth effect: Swiss economy is dependent on foreign workers. • Better opportunities for Swiss nationals in the EU Entry into force: 2002 Swiss policy on the EU: The bilateral agreements, June 2015 8 © Directorate for European Affairs DEA
How to proceed with FMA after 9.2.2014? • Adoption of the initiative «Against mass immigration» on 9.2.2014 with 50.3% of the votes and the majority of the cantons • The new Constitutional Article 121a is incompatible with the free movement of persons agreement (FMA) with the EU. • The FMA has to be renegotiated within 3 years and has to be adjusted to the new Swiss immigrations system. • If the Constitutional Article has not come into effect after 3 years, the Federal Council shall adopt the implementation provisions temporarily by decree until this point. • Threat of activation of the guillotine clause in case of a possible FMA termination: also the other agreements of the Bilaterals I would be terminated. Swiss policy on the EU: The bilateral agreements, June 2015 9 © Directorate for European Affairs DEA
Technical barriers to trade Content: • Mutual recognition of conformity ratings for most industrial products • Checking of compliance with product regulations, so that a product may be brought to market Relevance: • Swiss manufacturers obtain market access that is almost the same as that of their EU competitors in the sectors covered by the Agreement • Entrepreneurs save money and time when marketing their new products in Europe Entry into force: 2002 Swiss policy on the EU: The bilateral agreements, June 2015 10 © Directorate for European Affairs DEA
Public procurement markets Content: • Establishes criteria under which certain procurements must be internationally and publicly advertised. • The agreement extends the scope of application of the WTO Agreement: it now also covers procurement by regions and municipalities, procurement by public and private companies, e.g. in the sectors of rail transport, gas, and heating supply. Relevance: • Lower expenditure for the Confederation, the Cantons and the Swiss municipalities due to greater competition. • Equal access for Swiss companies to the billion market of the EU Entry into force: 2002 Swiss policy on the EU: The bilateral agreements, June 2015 11 © Directorate for European Affairs DEA
Agriculture
Content:
Facilitates trade in agricultural products between Switzerland and the EU
by reducing:
• Customs duties: cheese, fruits and vegetables, horticulture, meat and wine
• Non-tariff barriers: i.a. wine and spirits, organic agriculture, pest control
and crop protection, fodder and seeds
• Relevance:
• EU is Switzerland’s main trading partner in the agricultural sector (2014:
60% of CH-exports went to the EU, 74% of CH-imports came from the EU).
• Creates export growth: cheese export +2.8% per year between 2004-2014
Entry into force:
2002; 2011 the Agreement for the Mutual Protection of Designations of
Origin (GUB/GGA) entered into force.
Swiss policy on the EU: The bilateral agreements, June 2015 12
© Directorate for European Affairs DEAResearch Content: • Participation of Swiss research (universities, companies, individuals) in EU research programmes (ERP) • «Horizon 2020»: New generation of programmes Relevance: • Technological, scientific and economic benefit • 100% of the Swiss contributions returned to Switzerland in the form of project support. State of negotiations: • Negotiations on full association of Switzerland after 9.2.2014 suspended by the European Commission. • On 7.3.2014, the Federal Council agreed to a temporary solution for 2014 • On 5.12.2014, Switzerland and the EU signed an agreement on the partial association of Switzerland on Horizon 2020. Swiss policy on the EU: The bilateral agreements, June 2015 13 © Directorate for European Affairs DEA
Civil aviation
Content:
• 1. Mutual access to aviation markets for airlines
• 2. Swiss airlines enjoy nearly the same competitive conditions as their
EU competitors and are no longer discriminated against, for example,
in landing rights.
Relevance:
Crucial for the success of Swiss airlines in the highly competitive aviation
market
Entry into force:
2002; Since November 2011: negotiations on domestic
flights by foreign airlines (8th and 9th Freedom)
Swiss policy on the EU: The bilateral agreements, June 2015 14
© Directorate for European Affairs DEAOverland transport Content: • Mobility: Opens the road and railway transport market for the transport of persons and goods. • Environmental Protection: Contributes to the shifting of transalpine freight traffic from road to rail. • Introduction of a heavy vehicle tax and the increase of the maximum weight limit for trucks to 40 tonnes Relevance: • Everyday 20,000 trucks cross Switzerland’s borders. • 2014: 67.3% of goods traffic crossing the Alps by rail • Revenue from the heavy vehicle tax is used to improve the railways (2014: CHF 1.493bn). Entry into force: 2002; Transit Agreement:1992 Swiss policy on the EU: The bilateral agreements, June 2015 15 © Directorate for European Affairs DEA
Bilaterals II (2004)
1. Schengen / Dublin
2. Taxation of savings
3. Fight against fraud
4. Processed agricultural products
5. MEDIA
6. Environment
7. Statistics
8. Pensions
9. Education, vocational training, youth
Relevance - Political cooperation in other areas
- Improved economic framework
conditions
Swiss policy on the EU: The bilateral agreements, June 2015 16
© Directorate for European Affairs DEASchengen
Content:
• Facilitates travel by abolishing identity checks at the Schengen internal
borders.
• Guarantees security thanks to closer cross-border cooperation between the
police and justice systems, i.a. through the Schengen Information System,
SIS (as from 9 April 2013: SIS II).
• Switzerland takes part in the common visa policy for short stays of not
more than 3 months (Schengen visa).
Relevance:
Access to instruments of the international fight
against crime and economic advantages for tourism
Entry into force operationally:
12.12.2008; end of controls at Swiss airports for
flights within the Schengen Area: 29 March 2009
Swiss policy on the EU: The bilateral agreements, June 2015 17
© Directorate for European Affairs DEASchengen Area
States of the Schengen Area
Non Schengen Member States
with special status
Schengen Member State
with special status
Future Member States
Associated States
© EDA, STS KMZ-Geodienste
Swiss policy on the EU: The bilateral agreements, June 2015 18
© Directorate for European Affairs DEADublin
Content:
• Coordinates national responsibilities for asylum procedures.
• Access to the EURODAC fingerprint data bank allows the identification of
multiple and abusive asylum applications.
Relevance:
• Prevents costly and inefficient secondary and multiple
requests («asylum shopping» or «asylum tourism»).
• Relieves the national asylum systems through
burden sharing.
Entry into force operationally:
12 December 2008 (as with Schengen)
Swiss policy on the EU: The bilateral agreements, June 2015 19
© Directorate for European Affairs DEATaxation of savings income
Content:
• Allows for cross-border taxation of savings income of individuals with tax
residence in the EU.
• Since July 2011, the withholding tax is 35% (of this, 75% goes to the EU
states and 25% to Switzerland). It can be replaced by voluntary notification
of the interest payment to the tax authorities of the country of residence.
• Binds the parties to provide administrative assistance on request.
• The parties refrain from taxation on dividends or license-fee payments
between associated companies.
Relevance:
Tax contribution in 2013: CHF 501,1m, of which CHF
382,6m to EU states and CHF 127,5m to Switzerland
Entry into force: 2005, negotiations: revision / AEI
Swiss policy on the EU: The bilateral agreements, June 2015 20
© Directorate for European Affairs DEAAutomatic exchange of information (AEOI) • Cross-border tax evasion should be prevented with the help of the new global standard by the OECD for the automatic exchange of information (AEOI). • Switzerland and the EU signed such an agreement on 27 May 2015. The agreement replaces the taxation of savings agreement with the EU and applies for all 28 EU member states. • The AEI allows a level playing field in competition among financial centers and is an important tool in the international effort against tax evasion. Swiss policy on the EU: The bilateral agreements, June 2015 21 © Directorate for European Affairs DEA
Fighting against fraud
Content:
Improves cooperation in the fight against smuggling and other offences in
relation to indirect taxes (customs, VAT, consumer taxes), subsidies and
public procurement.
Relevance:
Reduces the risk of Switzerland being exploited as a hub for illegal business.
Entry into force:
Early implementation (as of 8 April 2009) by Switzerland
in cooperation with those EU countries that have ratified it
(all but Ireland). Notification by Croatia still pending.
Swiss policy on the EU: The bilateral agreements, June 2015 22
© Directorate for European Affairs DEAProcessed agricultural products Content: • Governs trade in processed agricultural products (foods such as chocolate, biscuits, pasta). • Revises Protocol 2 of the Free Trade Agreement of 1972. • Allows for duty-free export of Swiss food industry products. Relevance: • Increases the competitiveness of the Swiss food industry. • Secures a portion of the 37,000 jobs of the Swiss food industry. • Trade in processed agricultural products with the EU has risen by more than 70% since 2005 and amounted to CHF 7,0bn in 2014. Entry into force: 30 March 2005 Swiss policy on the EU: The bilateral agreements, June 2015 23 © Directorate for European Affairs DEA
MEDIA
Content:
Participation of Switzerland in the EU's film funding programme «MEDIA
2014-2020» as part of the EU framework programme «Creative Europe»
Relevance:
Funding contributions to Swiss film industry, better opportunities for Swiss
films in and outside of Europe, greater variety of films on offer in Switzerland
State of negotiations:
• The Federal Council has adopted a negotiating mandate on 19.9.2013.
That of the EU is still pending.
• The informal talks were suspended by the European
Commission after 2.9.2014 and resumed after 30.4.2014.
• On 7.3.2014, the Federal Council has agreed to a
temporary solution for 2014
Swiss policy on the EU: The bilateral agreements, June 2015 24
© Directorate for European Affairs DEAEnvironment Content: • Switzerland's participation in the European Environment Agency (EEA) • The EEA collects and analyses data on the environmental situation, provides data collection that follows binding criteria, features an Information and Observation Network (Eionet) and advises the European Commission on environmental policy. Relevance: • Access to a Europe-wide environment data base which covers many areas • Participation in the organization of projects and research activities • Better comparability and harmonization of one’s activities with those of neighbouring countries through intensive exchange of information. Entry into force: 1 April 2006 Swiss policy on the EU: The bilateral agreements, June 2015 25 © Directorate for European Affairs DEA
Statistics Content: • Adjusts Switzerland's standards of statistical data collection to those of the statistics office of the EU (Eurostat). • Provides access to a Europe-wide basis of comparable data on economic, political and social questions. Relevance: • A broad statistical base is a prerequisite for sound economic and political decisions. • Strengthening the negotiating position: in terms of negotiations Switzerland can rely on statistical data according to European standards. Entry into force: 1 January 2007 Swiss policy on the EU: The bilateral agreements, June 2015 26 © Directorate for European Affairs DEA
Pensions
Content:
Abolishes double taxation on the pensions of former EU officials living in
Switzerland.
Relevance:
This applies only to former officials of EU institutions, such as the European
Parliament, the European Commission, the Council of the EU, and the
European Court of Justice, who are now living in Switzerland.
Entry into force: 31 May 2005
Swiss policy on the EU: The bilateral agreements, June 2015 27
© Directorate for European Affairs DEAEducation, vocational training, youth Content: • Switzerland's participation in the EU’s education, vocational training and youth programmes • «Erasmus+»: New generation of programmes 2014-2020 Relevance: • Improves the offer and mobility in education and vocational training, raises the quality of education and improves opportunities in the job market. • Around 6,000 students participated in the exchange programmes CH-EU per year (about half each way CH→EU / EU→CH) State of negotiations: • Negotiations were suspended by the European Commission after 9.2.2014. • On 16.4.2014, the Federal Council adopted a temporary solution for 2014 which he decided to extend for two more years on 19.9.2014. Swiss policy on the EU: The bilateral agreements, June 2015 28 © Directorate for European Affairs DEA
Europol
Content:
• Agreement between Switzerland and Europol, the criminal prosecution
authority of the EU
• Improves cooperation between police authorities in the prevention of and
fight against serious and organised international crime, and terrorism.
• Facilitates the exchange of information and cooperation for analysis.
• Allows for the exchange of expertise, participation in training activities as
well as advice and support in investigations.
Relevance:
The exchange of information is steadily increasing and currently amounts to
around 500 operative notifications per month.
Entry into force:
1.3.2006; enlargement of area of application: 1.1.2008
Swiss policy on the EU: The bilateral agreements, June 2015 29
© Directorate for European Affairs DEAEurojust
Content:
• Agreement between Switzerland and Eurojust, the European Union’s
Judicial Cooperation Unit.
• Expands international cooperation on combating serious crime.
• Co-ordinates investigations and prosecution procedures between member
states and contributes to the clarification of questions of jurisdiction.
• Facilitates the exchange of information, international legal assistance and
the execution of extradition requests.
Relevance:
The number of cases submitted to Eurojust has been
steadily increasing (2013: 1576, +2.8% compared to 2012)
Entry into force: 22 July 2011
Swiss policy on the EU: The bilateral agreements, June 2015 30
© Directorate for European Affairs DEAFramework for Cooperation EDA
Content:
• Legally non binding agreement between Switzerland and the European
Defence Agency (EDA) on cooperation in the armaments sector.
• Enables Switzerland to detect developments in armaments policy at an
early state and to have access to multilateral armaments cooperation in
Europe, primarily in the domain of research, development, procurement
and maintenance of armaments.
• Switzerland remains free to decide on its own what information it wants
to exchange within the scope of this framework, and in what projects and
programmes it wishes to participate.
Relevance:
The agreement strengthens the economic, research
and technology position of Switzerland.
Entry into force: 6 March 2012
Swiss policy on the EU: The bilateral agreements, June 2015 31
© Directorate for European Affairs DEACooperation of competition authorities Content: • Agreement on cooperation between Switzerland and the EU to efficiently counter obstacles to cross-border competition. • Shall enable the exchange of confidential information and the cooperation of competition authorities in order to avoid redundancies. Relevance: • Crucial due to the close economic interconnections between CH and the EU • Shall enable greater coherence in decisions that deal with the same issues. • Shall improve the vigor of the Swiss Competition Commission (COMCO) thanks to relevant information of the EU-commission. Entry into force: 1 December 2014 Swiss policy on the EU: The bilateral agreements, June 2015 32 © Directorate for European Affairs DEA
Satellite navigation (Galileo, EGNOS) Content: • Switzerland’s participation in the EU satellite navigation programmes Galileo and EGNOS including certain rights to a single seat and to a say • Galileo: reliable and precise satellite navigation system • EGNOS: regional navigation system which improves global satellite signals in terms of accuracy and reliability. Relevance: • Galileo and EGNOS enhance independence vis-à-vis US-GPS. • Data availability in times of peace and crisis • Improved situation for Swiss aerospace and service industry in procurement. Date of signing: 18 December 2013 Swiss policy on the EU: The bilateral agreements, June 2015 33 © Directorate for European Affairs DEA
European Asylum Support Office (EASO) Content: • Switzerland’s participation in activities of EASO • EASO supports Schengen states whose asylum systems are under particular pressure. • EASO facilitates, coordinates and promotes cooperation among states on asylum-related matters. Relevance: • Expression of Switzerland’s solidarity • Strengthening of the Dublin system and contribution to more efficient and fair asylum system within the participating states • Use of expertise of other Schengen states Date of signing: 16 June 2014 (ratification still pending) Swiss policy on the EU: The bilateral agreements, June 2015 34 © Directorate for European Affairs DEA
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