3 June, 2021
EU / Switzerland: closing of negotiations on the framework agreement

The Swiss President, Guy Parmelin, announced on 26 May that the Confederation would not continue negotiations with the European Union in 2014 with a view to framework agreement. Currently, more than 100 sectoral agreements, sometimes obsolete, govern relations between Switzerland and the EU. The aim was therefore to provide a unified framework for this complex network, capable of evolving according to regulatory changes in the EU.

In 1992, Switzerland refused to join the European Economic Area and to adopt the free movement of goods and persons. It has finally gradually aligned itself with European law by signing multiple trade treaties. This rapprochement enabled him tobenefit from the benefits of the Community market withoutEU membership.

The latter had then begun negotiationswith Switzerland for a new bilateral agreement, specifying that the precondition was the signing of an institutional agreement. In 2018, both parties had begun to agree on a 1and The European Council, the European Council and the European Parliament, adopted a resolution on the subject.

The main obstacles between the two partners relate to:

  • rules on the control of State aid : difficult to agree on the court which was to decide as a last resort, Bern not wishing to submit to the Court of Justice of the European Union;
  • the free movement of personswhich would have led to a complete change in the migration policy in Switzerland: the EU wanted to move closer to the fluidity of travel between Member States, while Switzerland preferred to regulate facilities on its territory and limit access to social benefits for European nationals;
  • on level of wagesThis could destabilise the pay scale in the Alpine country. Bern fears a form of social dumping.

The EU is a major market for Switzerland: about 50% of exportsEUR 100 billion per year. It is also its first supplier with 120 M€ of imported goods in Switzerland, accounting for 63% of Swiss imports.

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