Britain and Switzerland Agree to Major Trade Deal for Services and Growth
By Dave Graham and Alistair Smout
Landmark Trade Agreement Details and Impact
BERN/LONDON, July 13 (Reuters) - Britain and Switzerland agreed a trade deal on Monday that they said would boost their services industries and let workers in finance and other sectors travel visa-free in each other's territories for up to 90 days a year.
Britain said the deal could boost exports by £5.2 billion ($7 billion) a year with its enhancements on services and digital trade.
Significance for UK Businesses and Consumers
"This is the most significant services trade deal the UK has ever negotiated," British Trade Secretary Peter Kyle said. "It will bring huge benefits to British business and consumers."
Projected Economic Impact
Total bilateral trade would increase by around 7.9 billion Swiss francs ($9.76 billion) per year in the long run, equivalent to a 25% uplift, the British embassy in Switzerland said.
Key Provisions of the Agreement
Five-Year Transfers and No Roaming Fees
The deal built on the previous Free Trade Agreement between the two countries which was carried over when Britain left the European Union and already covered most trade in goods.
As well as reciprocal 90-day visa-free travel for services professionals each year, the deal also allows UK businesses to transfer staff to offices in Switzerland for up to five years without needing to pass Swiss economic tests.
Under the agreement, both sides aim to scrap mobile roaming fees and, in a separate arrangement, UK nationals will soon be able to use e-gates when entering Switzerland.
Broader Context of Post-Brexit Trade
Britain has sealed post-Brexit free trade agreements with India, Gulf countries and South Korea since the start of last year. It has also claimed some successes in talks on trade with the United States and the European Union.
Switzerland has been pushing hard to expand its base of free-trade agreements since the shock of suffering the highest U.S. tariffs in Europe last year when U.S. President Donald Trump set a 39% import duty on Swiss products.
Earlier this month, Switzerland and the other members of the European Free Trade Association announced they had concluded negotiations with Vietnam on a free trade agreement.
Legal Certainty and Intellectual Property
Swiss President Guy Parmelin, who is also Switzerland's economy minister, said at an event with Kyle in Bern that in a world of "growing protectionism and tariffs coming from all sides" the accord benefited both countries, securing reliable conditions for businesses to operate in.
"And having predictability, ultimately, is essential," he told reporters. "Without legal certainty, investments slow down."
Pharmaceutical Industry Protections
Asked about disagreements reported by Politico over intellectual property in the pharmaceutical industry during talks, Parmelin said the deal safeguarded the high levels of protection already applied by both countries.
This includes 10 years of regulatory protection for products intended for human use, he noted.
The Association of the British Pharmaceutical Industry (ABPI) welcomed the commitment to a "strong and proportionate IP regime", adding that "this message of stability helpfully underpins our efforts to drive more investment in both countries."
Next Steps for Implementation
Once legal formalities have been finalised, the aim is to have the agreement signed by the end of 2026, Switzerland said.
Exchange Rates
($1 = 0.7468 pounds)
($1 = 0.8092 Swiss francs)
(Reporting by Alistair Smout in London and Dave Graham in Bern; Editing by Andrew Heavens)
