EU And Switzerland Discuss Removal Of Agricultural Tariffs

by Ulrika Lomas, Tax-News.com, Brussels

06 November 2008

Negotiations have started between the EU and Switzerland towards liberalising agricultural trade between the two areas.

Mariann Fischer Boel, the EU Commissioner for Agriculture and Rural Development and Doris Leuthard, the Swiss Federal Councillor and Head of the Federal Department of Economic Affairs, commenced talks aimed at freeing-up agro-food trade on Tuesday. Their joint objective is full liberalisation of trade in agriculture between the EU and Switzerland.

Switzerland is not currently a member of the European Union, however, along with Iceland, Norway and Liechtenstein, it has opted into the single market.

Liberalisation of trade between the EU and Switzerland started with the 1972 Free Trade Agreement (FTA), which created a free trade zone for industrial products. Agricultural products are excluded, although processed agricultural products are included under the agreement.

"The EU and Switzerland are neighbours and have much in common; we have made a lot of progress over the years in freeing up bilateral trade, but now we want to take this process to its logical conclusion. I welcome the willingness on the Swiss side to launch these talks and I look forward to working closely with Doris Leuthard. Both sides have much to gain from this process," Mariann Fischer Boel explained.

The Commission believes that the planned liberalisation will facilitate trade exchanges to the benefit of both parties and contribute to the improvement of economic conditions in Europe.

Not only will tariff removal be discussed, negotiations on non-tariff issues, such as food and feed safety will take place with Androulla Vassiliou, the Health Commissioner, leading the negotiations for the EU.

In 2007, total EU agro-food exports to Switzerland amounted to EUR4.7bn, whereas the corresponding value of EU imports from Switzerland was EUR2.7bn. Switzerland is the EU's 3rd biggest trade partner in the sector. 70% of Swiss agricultural exports go to the EUs market while 7% of the EU's agro-food exports go to Switzerland.

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