Negotiations on a potential free trade agreement
It is now up to the two parties, after withdrawal during the remaining transition period until the end of 2020, to negotiate a free trade agreement with the aim of signing by the end of the year. EU law will continue to be applied in the UK during the transition period. This includes EU trade rules such as the EU VAT system and other tax-related directives, the rules of the internal market and the customs union.
Switzerland and the UK sign trade agreement
Federal Councillor Guy Parmelin and the British Secretary of State for International Trade, Liam Fox, have signed a bilateral trade agreement in Bern on 11 February. The agreement ensures the continuation of the economic and commercial rights and obligations arising from the agreements between Switzerland and the European Union (EU). It lays the foundations for the two parties to continue their sound economic and trade relations once the United Kingdom has left the EU. The new agreement was concluded as part of the Federal Council’s ‘Mind the Gap’ strategy. It replicates the vast majority of the trade agreements with the EU that currently govern relations between Switzerland and the United Kingdom.
As part of its ‘Mind the Gap’ strategy, the Federal Council wishes to ensure that the existing mutual rights and obligations in its relationship with the UK will continue to apply as far as possible after the UK leaves the EU, and to expand them in certain areas. With this in mind Switzerland and the UK have already signed agreements on road transport, air transport and insurance. In December 2018 the Federal Council adopted an agreement on citizens’ rights with the United Kingdom.
Agreement covers Liechtenstein as well
An additional agreement between Switzerland, the United Kingdom and the Principality of Liechtenstein to extend the relevant provisions of the trade agreement to the territory of Liechtenstein under the Swiss-Liechtenstein Customs Union was also signed today.
Bilateral agreements between Switzerland and the EU currently still valid
In the current transition phase, the bilateral agreements between Switzerland and the EU continue to apply between Switzerland and the United Kingdom. The agreements will serve as the basis for economic and trade relations between Switzerland and the United Kingdom after the end of the transition phase.
Important questions for Swiss exporters
- What are the rates of duty applicable after the withdrawal?
Until 31 December 2020, the current customs rates (EU) will remain in force.
- With which input materials may an origin cumulation be carried out?
Until 31 December 2020, EU goods will continue to retain their origin.
- In what form must a proof of origin be issued?
Valid proofs of origin are the movement certificate EUR 1 or EURO-Med as well as the declaration of origin on the invoice up to a value of CHF 10,300. Authorized exporters can continue to issue declarations of origin on the invoice regardless of the amount.
- We have a warehouse in the EU. Is it possible that stored originating goods cannot be delivered preferentially due to the direct shipment clause?
During the transition period until the end of December 2020, the UK is still part of the European Customs Union.
- What does brexit mean for customs and transport handling?
During the transition period until the end of December 2020, customs and transport procedures will remain unchanged.
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