Draft negotiating mandate for a trade agreement with the USA

Based on the non-binding joint statement signed between Switzerland and the USA on 14 November, Swiss goods imported into the USA will benefit from significant tariff relief: instead of an additional tariff of 39%, a tariff ceiling of 15% will be applied. The joint statement also stipulates that Switzerland and the USA will promptly enter into negotiations on a legally binding trade agreement covering the areas listed therein. The Federal Council adopted a draft mandate for these negotiations on 5 December. The next step will be to consult the foreign affairs committees of the National Council and Council of States, as well as the cantons through the Conference of Cantonal Governments.

The aims of the upcoming negotiations are to consolidate the tariff concessions for Swiss goods imported into the USA reached in the joint statement, and to stabilise bilateral trade relations. Switzerland is also committed to further improving access to the US market. Switzerland's scope for action in foreign policy and foreign economic policy - including relations with other important trading partners - should be preserved. The outcome of the negotiations should respect Switzerland's constitutional and international law obligations, in particular the existing bilateral agreements with the EU and the package aimed at stabilising and further developing relations with the EU.

The negotiations are intended to lend substance to the points set out in the joint statement. The main topics are as follows:

· Trade in goods: Based on the solution reached in the joint statement of 14 November, Switzerland is prepared to consider further tariff concessions on products originating in the USA for a legally binding agreement, provided that the USA is also prepared to make additional concessions. Any additional tariff concessions on Switzerland's part must be compatible with Swiss agricultural policy.

· With regard to non-tariff barriers to trade and services, consideration should be given to areas where bureaucratic hurdles, unnecessary technical regulations and trade restrictions can be removed.

· Digital commerce: In line with its position within the WTO and its obligations under existing free trade agreements, Switzerland intends to continue to refrain from levying customs duties on electronic transmissions. In addition, the Federal Council confirms that it will continue to refrain from introducing a digital services tax and customs duties on electronic transmissions.

· With regard to economic security, the aims are to build on existing cooperation in the areas of investment and export controls and sanctions. Areas such as value chains can also be discussed. Switzerland's sovereignty and neutrality remain intact.

· Investment: Swiss companies operating in the USA have announced plans to invest at least USD 200 billion in US states over the next five years. These are announcements from the private sector that do not affect the public sector.

Other topics of negotiation include cooperation on public procurement, intellectual property, sustainable development and the encouragement of vocational education and training programmes.

Address for enquiries:

GS-EAER Communications +41 58 462 20 07 [email protected]

Publisher:

Federal Department of Economic Affairs, Education and Research