Malaysia Hotline: +603- 2141 8908
Free
Trade Agreements are international treaties concluded between two parties (individual
countries or transnational groupings) in order to safeguard free trade. Free
trade agreements are designed to improve business links with important partners
around the world. They aim to eliminate or at least minimize barriers to
international markets for the Swiss economy. Customs duties and non-tariff
trade barriers (e.g. technical regulations, packaging and labeling regulations,
import quotas) are to be reduced.
Free Trade Agreements Current
Status
In
addition to the EFTA agreement and the free trade agreement with the European
Union, Switzerland currently has a network of 28 free trade agreements with 38
partners outside the EU, and new agreements are continually being negotiated.
Most of
the Swiss agreements are concluded within the context of the European Free
Trade Association (EFTA). In addition, Switzerland is also entitled to
negotiate free trade agreements without the involvement of EFTA, as was the
case, for example, with China, Japan and the Faroe Islands.
Content of the Agreements
The
essential component of every agreement is trade in merchandise (in particular
the reduction of customs duties and other trade restrictions). These regulate
trade in industrial products (HS Chapter 25-97), fish and processed
agricultural products. Trade in unprocessed agricultural products tends to be
regulated in separate bilateral agricultural agreements.
In
addition to trade in merchandise, other aspects which are often covered in new
agreements include the protection of intellectual property rights, trade in
services, investments, public procurement and technical regulations. These are
the so-called «second-generation agreements».
Benefits of the Agreements
In 2013
agreements concluded with free trade partners, with the exception of the FTA
with the EU, cover 22.6% of Switzerland's total exports. This corresponds to
51% of Switzerland's exports to markets outside the EU. Free trade agreements
promote in particular the growth, added value and competitiveness of
Switzerland as a business location.
Free trade
agreements have reduced the price of products for Swiss consumers and have
increased the range of products available. At the same time, Swiss producers
benefit from more advantageous prices for semi-finished goods and raw
materials.
Aims and Strategy
Switzerland
is closely integrated into the world economy. Its economic structure is
characterized by its pronounced outward orientation. Switzerland's prosperity
therefore depends, to a large extent, on international trade in goods and
services as well as on cross-border investment activities. Consequently, the
constant improvement of access to foreign markets represents a core objective
of Swiss foreign economic policy. The best way to achieve this objective is the
multilateral approach within the framework of the World Trade Organization
(WTO). At the same time, a constantly growing number of countries are entering
into bilateral or plurilateral, regional or supra-regional FTAs, as a way to
complement the ongoing multilateral trade liberalization. By entering into
FTAs, Switzerland aims to provide its companies with a level of access to
international markets that is at least equivalent to the market access
conditions enjoyed by its most important foreign competitors (such as the EU,
the USA and Japan), which are also continually extending their networks of
FTAs. Free trade agreements are therefore an important instrument in
maintaining and strengthening Switzerland's competitiveness as a business
location.
According
to the foreign economic strategy of the Federal Council, the selection of
prospective free trade partners is based on four main criteria:
1. The
current and potential economic importance of a partner;
2. The
extent of existing or potential discrimination that may result from the
conclusion of FTAs between the prospective partner and important competitors of
Switzerland;
3. The
willingness of the partner to enter into negotiations, and the corresponding
prospects for success;
4. Other
considerations such as inter alia the expected contribution of a FTA towards
the economic stabilization and development of a partner or in general the
compatibility with Swiss foreign policy objectives.
Contact
us
If
you have further queries, please contact Tannet
24
hours Malaysia hotline：603-21418908;
24
hours Hong Kong hotline：852-27837818;
24
hours Hong Kong hotline：86-755-
36990589;
Email:
mytannet@gmail.com
TANNET GROUP : http://www.tannet-group.net, http://en.tannet.com.my