Switzerland and the United Kingdom Seal a New Free Trade Agreement After Three Years

At the centre of the treaty are digital trade and services. Bureaucratic hurdles are to be removed, and cross-border data traffic will be facilitated. The agreement stipulates that no country may impose mandatory local data storage requirements beyond existing exceptions. This is intended to allow data flows between Switzerland and the United Kingdom to move more freely.

At the media event, Federal President Guy Parmelin spoke of a «Botschaft an die Welt»: In the current geopolitical climate of isolation and tariffs, Switzerland and the United Kingdom would demonstrate that trade could be optimised through common rules. He also emphasised: «Heute gehen wir deutlich darüber hinaus und verleihen der strategischen Wirtschaftspartnerschaft zwischen der Schweiz und dem Vereinigten Königreich eine neue Dimension.»

Patent Protection and Intellectual Property

From the Swiss perspective, intellectual property was a key focus. As Parmelin said, this was a point on which Switzerland had insisted particularly strongly: «Das geistige Eigentum war einer der Punkte, auf denen die Schweiz besonders stark bestanden hat.» He also noted that it had initially «anfänglich auf der britischen Seite nicht zum Verhandlungsmandat» belonged. Both states commit to permanently anchoring their patent law standards in a binding international agreement.

For businesses, the agreement brings concrete relief: Swiss businesspeople will in future no longer need a work visa for stays of a few weeks in the United Kingdom. British specialists will be able to travel visa-free to Switzerland for services for up to three months. Switzerland will also ensure that British nationals can use the e-gates at Swiss airports in future.

Economic Impact

The agreement is also relevant for the major export industries. The British side expects that the volume of services trade with Switzerland will rise by around 7.9 billion francs per year – a quarter – in the long term. Parmelin pointed to new legal certainty in the cross-border provision of services, establishments, and investments: «Vor allem stärkt es die Rechtssicherheit bei der grenzüberschreitenden Erbringung von Dienstleistungen, bei Niederlassungen und bei Investitionen.»

British Economic Secretary Peter Kyle cited the consulting firm KPMG as an example, noting that it would benefit from the simplified exchange of personnel between Swiss and British offices. He also spoke of advantages for the financial and pharmaceutical sectors. The United Kingdom is Switzerland's third most important export market after the USA and Germany; overall, the United Kingdom is Switzerland's fifth most important trading partner.

In the agricultural sector, Switzerland secured tariff quotas for products such as wine and yoghurt, but obtained no concessions on beef. In freight transport, Swiss shipping companies will gain secured access to British ports, from which the Geneva-based company MSC could also benefit. Parmelin regarded it as a success that the agreement contains rules on patent protection.

Both sides also want to reduce or eliminate roaming charges for phone calls made from the other country. As a British press release noted, travellers in both countries should no longer pay roaming fees, although implementation will take time. Details on this point remain open.

Background: Independence from the EU

The background to the agreement is the need to reorganise bilateral relations following the United Kingdom's departure from the EU in 2016. Both states are not members of the EU and advocate for open markets. In Bern, Parmelin said the outcome of the negotiations should not be understood as a message to the US President. Switzerland is increasingly pursuing a strategy of independent free trade agreements – also in response to US tariffs – such as recently with Vietnam and, controversially due to possible increased meat imports, with the Mercosur states.

No major opposition is expected against the British agreement, unlike with the Mercosur treaty, for which Swiss farmers are demanding compensation. Migration-related regulations of both states are not changed by the agreement. The full treaty text will only be published after signing.