EU And Switzerland Initial Bilaterals II

by Ulrika Lomas, for LawAndTax-News.com, Brussels

29 June 2004

The European Union and Swiss government on Friday initialled the nine new sectoral agreements which comprise the 'Bilaterals II' package.

The draft agreements will now be submitted to the European Council as soon as possible, so that they can be signed and ratified by the EU member states.

Issues covered by the nine agreements include:

• The taxation of savings income: This agreement is based on four key elements: a retention levied by Swiss paying agents on interest payments to EU residents, the revenue of which will be shared with Member States; a mechanism for voluntary disclosure; the exchange of information on request in cases of 'tax fraud or the like'; and a review clause that allows the contracting parties to review the terms of the agreement to take account of international developments.
• Fight against Fraud: Full judicial co operation and administrative assistance will be granted mutually, to prevent, investigate and prosecute fraud cases, smuggling and money laundering.
• Schengen: This agreement will facilitate the free movement of EU and Swiss citizens and will have an important effect on the lives of trans-border workers. It also means that the fight against terrorism and crime will be further reinforced.
• Dublin Convention: Switzerland will participate in EU policy on determining the responsibility for asylum applications, and will additionally participate in the EU electronic system for the identification of asylum-seekers.
• Processed agricultural products: opens the way for improved trade flows in, for example, spirits, coffee, tea and products with a sugar content. As regards the adaptation of bilateral preferential concessions on agricultural commodity and agricultural processed products, in relation to the EU enlargement, Parties already reached an agreement on the eve of the June Summit. Parties are now preparing the implementation measures on an autonomous basis, with retroactive effect as from 1 May 2004.
• Environment: Swiss policy-makers will benefit from targeted and reliable information provided by the European Environment Agency to promote sustainable development.
• Statistics: Switzerland will participate in the European Statistical System, enjoying the benefits of compatible data in a wide range of areas.
• Media: This agreement establishes the terms and conditions under which Switzerland could participate in the EU Media programme.
• Double Taxation: An agreement to prevent double taxation of EU civil servants who have retired in Switzerland.

According to the EC, negotiations on matters arising from the EU's enlargement including the protocol adapting the agreement on free movement of persons are expected to be concluded before the summer break.

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